Ashtrom Renewable Energy announced that its 306-MW Tierra Bonita solar project is commercially operational and has received the required approvals before schedule.
Tierra Bonita was established at a total cost of $435 million, of which the company invested $165 million in equity.
The solar project in Pecos County, west Texas, covering around 2,200 acres, will produce electricity equivalent to the annual consumption for about 75,000 households. It is expected to reduce CO2 emissions by 500,000 tons per year.
“Through innovative agreements like the sale and transfer of production tax credits under the Inflation Reduction Act, we are further maximizing the project’s financial and environmental impact,” said Yitsik Mermelstein, CEO of Ashtrom Renewable Energy.
Ashtrom Renewable Energy has secured the sale of 60 percent of the generated electricity (180 MW ac) by signing a 20-year-power purchase agreement with CPS Energy. The remaining electricity generated by the project will be sold by Ashtrom Renewable Energy on the free market.
Moreover, Ashtrom Renewable Energy has signed an agreement under Inflation Reduction Act legislation for the transfer and sale of project tax credits to a Moody’s Aa3 rated American institutional entity in consideration of $300 million over a period of 10 years.
Tierra Bonita is one of the six projects of the company in the U.S., which total approximately 1,800 MW. Ashtrom Renewable Energy holds 11 percent of a 257 MW wind energy project in Poland.
