Arava Power’s 270 MW SUNRAY photovoltaic project has started its commercial operation in Uvalde County, Texas.
The project is Arava’s first in the U.S. It was developed with oil and gas retailer Paz Group and funded in partnership with insurance company Menora Mivtachim at a total cost of $330 million.
The project spans 1,200 acres, with the land leased for 50 years. It includes 500,000 solar panels. Half of its generated electricity is being sold under a 12-year PPA, with the remaining half sold on the merchant electricity market in Texas.
“We succeeded in developing our first U.S. project under extremely challenging market conditions,” says Ilan Zidkony, CEO of Arava Power
“Over the past few years, our team had to contend with regulatory upheavals, an almost unprecedented inflationary environment and a complex financing landscape. Our company is proud of this achievement and are grateful for the confidence of top-tier partners and financiers. The commercial operation of SUNRAY is a key milestone in Arava Power’s U.S. vision, with a portfolio of projects in various stages of development totaling 1.3 GW across the U.S.”
Arava Power and Paz Group began developing the SUNRAY project in 2021, after acquiring it from OCI Energy. They completed financial closing in 2023 and, as of last month, finished the construction work and received approval for commercial operation.
The project raised $215 million in construction financing fully underwritten by Nomura Securities and $70 million in senior debt, provided by a consortium led by Nomura and including Bank Ha’poalim and BHI. Morgan Stanley serves as the tax equity partner in the project and together with an additional investor made an investment of approximately $150 million.
