Ashtrom Renewable Energy, a global leader in independent power production and renewable energy development, and a subsidiary of the Ashtrom Group, has recently secured $270 million in green financing for the Tierra Bonita Solar Project in Texas. This funding has been arranged in collaboration with a consortium of five leading banks, marking a crucial step towards the project’s realization.
In a strategic move that underscores their commitment to sustainable energy, Ashtrom Renewable Energy has also finalized a Tax Credit Transfer Agreement (TCTA) for the Tierra Bonita Solar Project in Texas. Under this agreement, they will transfer the production tax credits (PTCs) generated by the project over a ten-year period to a highly-rated (Aa3 Moody’s) U.S. institutional entity, with an estimated total value of $300 million. Remarkably, the Tierra Bonita Solar Project in Texas stands as a trailblazing example in the United States, having successfully completed a Tax Credit Transfer Agreement for solar PTCs under the new Inflation Reduction Act (IRA), alongside the achievement of comprehensive project financing
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CEO Yitsik Mermelstein expressed his enthusiasm, stating, “The financial closure of the Tierra Bonita Solar Project in Texas represents a significant milestone for Ashtrom Renewable Energy. It underscores our unwavering confidence in our capabilities to execute the development, planning, financing, and construction of our inaugural large-scale solar endeavor in the U.S., with an approximate investment of $435 million.” He further highlighted the pioneering agreement to sell project tax credits, following last year’s Power Purchase Agreement (PPA) wherein 60% of the plant’s electricity was committed to CPS Energy, the municipal utility of San Antonio, for a 20-year term.
Planned capacity of the upcoming Tierra Bonita Solar plant in Texas
Spanning a vast 2,400-acre site in Pecos County, Texas, the Tierra Bonita Solar Project in Texas is designed to have a planned capacity of 400MWdc (306 MWac). Presently, it is progressing through the construction phase, with commercial operations anticipated to commence by Q4 2024. Beyond its impressive energy output, the project is set to contribute significantly to environmental preservation by reducing CO2 emissions by over 500,000 tons annually. To align with its green objectives, financing for the Tierra Bonita Solar Project in Texas was structured as a Green Loan, following Green Loan Principles, with ING serving as the Green Loan Structuring Agent.
The development has been a collaborative effort between Ashtrom Renewable Energy and its local development partner, OnPeak Power, LLC, a distinguished privately-held renewable energy company headquartered in Austin, Texas, known for its expertise in renewable energy project development and asset optimization. The project benefits from the expertise of Mortenson, the EPC contractor overseeing its realization
