Ashstrom Group signed its first PPA agreement for a long-term sale of electricity on the American market. As part of the agreement, a dedicated project company jointly owned by the Ashtrom Group and Kenlov Renewable Energy will sell the electricity produced by the Tierra Bonita project in the United States: approximately 235 MW DC, or approximately 60% of the capacity total of the project. .
The electricity will be sold to CPS Energy, the municipal electric and natural gas utility for the city of San Antonio, Texas, and will be provided to the utility at a fixed price for a period of 20 years. The rest of the electricity produced by the project and its green certificates will be sold on the open electricity market in Texas.
Tierra Bonita has already achieved significant development milestones, including securing its key land rights and signing a grid connection agreement. According to the company’s assessment, the completion of the project’s development processes and the start of construction are expected to take place in the second quarter of 2023, and commercial operation is expected in late 2024.
“This agreement marks a major milestone in our investment activity in the United States and reflects the continued progression of our renewable energy business in this long-term market,” said Yitsik Marmelshtein, CEO of Ashtrom Renewable Energy. “We are currently working to advance other PPA agreements for additional projects we are developing in the United States”
“Currently, our US renewable energy development pipeline includes projects in various stages of development in the US, with a planned total capacity of approximately 1.5 GW,” continued Marmelshtein. “We aim to expand our investments in the renewable energy sector, primarily in the United States and Europe.”