Independent power producer (IPP) Ashtrom Renewable Energy has started operations at its 400MW solar PV plant in Texas, US.
This is the first operational renewable project for the IPP in the US, and is part of a 1.8GW development portfolio in the country.
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A 20-year power purchase agreement for 60% of the electricity generated for the Tierra Bonita project has been secured with municipally owned gas and electric utility CPS Energy, while the remaining electricity generated by the project will be sold on the free market.
Financing of the project was a total of US$435 million, of which the company secured US$270 million last year through five financial entities, while it invested US$165 million in equity. Construction of the project started in the second quarter of 2023.
On top of this, the company also secured what it calls a ‘first-of-its-kind’ agreement under the Inflation Reduct Act legislation for the transfer and sale of project tax credits (Premium access) to an undisclosed American institutional entity. The IPP said the transaction would be worth around US$300 million over a ten-year period.
Yitsik Mermelstein, CEO of Ashtrom Renewable Energy, said: “This achievement not only underscores our ability to deliver utility-scale renewable energy projects, but also reflects our commitment to sustainable growth within just three years of establishing the company. Through innovative agreements like the sale and transfer of production tax credits under the Inflation Reduction Act, we are further maximising the project’s financial and environmental impact.”
