Ashtrom Group has signed its first PPA agreement for a long-term sale of electricity in the U.S. market. As part of the agreement, a dedicated project company jointly owned by the Ashtrom Group and Kenlov Renewable Energy will sell electricity generated by the Tierra Bonita project in the U.S.: about 235 MW DC, which is approximately 60% of the total capacity of the project.
The electricity will be sold to CPS Energy, the municipally owned electric and natural gas utility of the City of San Antonio, Texas, and will be supplied to the utility at a fixed price for a period of 20 years. The remaining project-generated electricity and its green certificates will be sold on the open electricity market in Texas.
Tierra Bonita has already achieved major development milestones, including the securing of its main land rights and signing of a grid connection agreement. According to the company’s assessment, completion of the project development processes and the start of construction should take place in the second quarter of 2023, and its commercial operation is expected at the end of 2024.
“This agreement signifies a major milestone in our investment activity in the U.S. and reflects the continued progress of our renewable energy activity in this market for the long term,” says Yitsik Marmelshtein, CEO of Ashtrom Renewable Energy. “We are currently working on advancing other PPA agreements for additional projects that we are developing in the U.S.”
“At present, our renewable energy development pipeline in the US includes projects in various development stages in the U.S., with total planned capacity of ~1.5 GW,” Marmelshtein continues. “We are aiming to expand our investments in the renewable energy sector, mainly in the U.S and in Europe.”