A Texas solar project is taking advantage of a novel financing scheme granted under the Inflation Reduction Act to bypass traditional tax equity markets and transfer clean energy tax credits.
Ashtrom Renewable Energy has agreed to sell the production tax credit from the 400 MW Tierra Bonita Solar in Texas to an undisclosed U.S. "institutional entity." The 10-year deal is valued at an estimated $300 million and is believed to be one of the first executed under the IRA's new transferability rule.
Additionally, Ashtrom secured $270 million in financing from BHI, the U.S operation of Bank Hapoalim Group, Bayerische Landesbank, ING Capital, Rabobank and Société Générale.
Ashtrom previously secured a 20-year power purchase agreement with San Antonio municipal utility CPS Energy for 60% of the project's capacity.
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Tierra Bonita Solar marks Ashtrom Renewable Energy's first large-scale solar project in the U.S.
A subsidiary of the Israeli construction and real estate conglomerate Ashtrom Group, Ashtrom Renewable Energy developed the project in partnership with Austin-based OnPeak Power. Mortenson is providing engineering, procurement, and engineering services.
The Tierra Bonita project is located on a 2,400-acre site in Pecos County, Texas, with a planned capacity of 400MWdc (306 MWac). It is currently under construction and commercial operation is expected by Q4 2024.
Morgan Lewis and Marathon Capital advised Ashtrom Renewable Energy for the financing deals.
