Powering Texas with Renewable Energy

The Tierra Bonita Project is a solar project in Pecos County, in west Texas, covering around 2,200 acres with a 306 MWac capacity. The project will produce electricity equivalent to the annual consumption for about 75,000 households and is expected to reduce CO2 emissions by 400,000 tons per year. 

60% of the generated electricity is sold to CPS Energy, the nation’s largest municipally-owned electric and gas utility under 20-year Power Purchase Agreement.

Tierra Bonita was established at a total cost of $435M, of which Ashtrom Renewable Energy has invested $165M in equity. Tierra Bonita is the first-of-its-kind agreement under the Inflation Reduction Act (IRA) legislation for the transfer and sale of project tax credits in consideration of $300M over 10 years.

The Ashtrom Group has recently entered into an investment agreement with institutional entities from Clal Insurance and Finance Group and Menorah Mivathim Holdings Ltd. Under the agreement, these entities will acquire approximately 36% of Tierra Bonita Partners LLC, which holds the rights to the Tierra Bonita solar project, in exchange for approximately $79 million. This transaction reflects a valuation of approximately $220 million for the property company.