The Tierra Bonita Solar Project is a $435 million, 400MWdc (306MWac) utility-scale ground-mounted photovoltaic facility spanning approximately 2,200 acres in Pecos County, West Texas, developed by Ashtrom Renewable Energy — a subsidiary of Israeli infrastructure conglomerate Ashtrom Group — in partnership with OnPeak Power as the original developer, and representing Ashtrom’s first large-scale solar project in the United States. Located in the ERCOT grid and backed by a landmark 20-year Power Purchase Agreement with CPS Energy (San Antonio’s municipal utility) for 60% of output, the project also pioneered one of the first solar Production Tax Credit (PTC) transfer agreements under the Inflation Reduction Act. The project obtained commercial operation approvals ahead of its contracted date, with commercial operations commencing in December 2024, powering the equivalent of approximately 75,000 households annually and reducing CO2 emissions by 500,000 tonnes per year. Tierra Bonita’s entry into operations joins a steady flow of ERCOT completions reshaping the Texas grid, with Avantus and Toyota Tsusho America’s 159MWdc Norton Solar Project in Runnels County also recently reaching commercial operations — underpinned by a long-term virtual PPA with Toyota Motor North America and completed in just 14 months from groundbreaking to substantial completion, illustrating the execution speed now achievable in the mature Texas utility-scale solar market.

Project Overview

Type: Utility-scale ground-mounted solar PV project

Location: Pecos County, West Texas (ERCOT grid interconnection)

Total site area: ~2,200 acres

Total capacity: 400MWdc / 306MWac

Total project cost: $435 million

Equity contribution: $165 million (Ashtrom Renewable Energy)

Green loan financing: $270 million (five-bank consortium)

Tax Credit Transfer Agreement: $300 million estimated value over 10 years (solar PTCs under IRA)

Construction commenced: Q2 2023

Commercial operations date (COD): December 2024

Delivered ahead of contracted commercial operation date

Annual generation: Powers ~75,000 Texas households

Annual CO2 reduction: ~500,000 tonnes

Offtake: 20-year PPA with CPS Energy (180 MWac — 60% of output); remaining 40% sold on open ERCOT market

IRA significance: One of the first US solar projects to complete both a solar PTC Transfer Agreement and full project financing simultaneously under the IRA

Ashtrom US pipeline: One of six US projects totalling ~1,800MW; followed by El Patrimonio Solar (150MWac, Bexar County, Texas — under construction 2025, COD H2 2027)

Project Team

Owner/Developer: Ashtrom Renewable Energy (subsidiary of Ashtrom Group, TASE: ASHG)

Ashtrom Renewable Energy CEO: Yitsik Mermelstein

Ashtrom Group CEO: Gil Gueron

Ashtrom Group Chairperson: Rami Nussbaum

Original Developer: OnPeak Power LLC (Austin, Texas; acquired by Ashtrom 2021)

EPC Contractor: Mortenson Construction

Offtaker: CPS Energy (City Public Service, San Antonio) — Aa2 Moody’s rated; largest municipally-owned US electric and gas utility

Tax Credit buyer: Undisclosed Aa3 Moody’s-rated US institutional entity

Green Loan lenders (five banks): BHI (US arm of Bank Hapoalim Group); Bayerische Landesbank; ING Capital; Rabobank; Société Générale

Green Loan Structuring Agent: ING Capital

Financing structure: Green Loan (aligned with Green Loan Principles); plus IRA Tax Credit Transfer Agreement (TCTA)

Published 2nd October 2023: 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

Read also: Debt financing secured for Chile’s 107MW portfolio of solar projects

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