Ashtrom Renewable Energy, a global independent power producer and renewable energy developer and subsidiary of Ashtrom Group, has signed a Power Purchase Agreement (PPA) to sell electricity to the municipality of San Antonio, Texas through CPS Energy, the city's local utility company.
According to the signed agreement, CPS Energy (Aa2 Moody's) will purchase approximately 70% of the electricity produced by the project, along with purchasing green certificates (RECs), for a period of 20 years at a predetermined fixed price. Under the agreement, Ashtrom has committed to achieve the commercial operation of the El Patrimonio project by the second half of 2027. The remaining electricity produced by the project is expected to be sold within Texas's open electricity market. The project will produce electricity equivalent to the annual consumption for about 37,500 households.
"We are proud to announce a significant collaboration and the signing of an important agreement with CPS Energy, the largest municipal utility company in the U.S.," said Yitsik Mermelstein, CEO of Ashtrom Renewable Energy. "The agreement is not only an expression of our great partnership with CPS Energy, but also a central pillar in realizing our strategic vision to expand renewable energy activities in the country. This step strengthens our position as a leading player in the industry and is a significant milestone in the company's growth journey."
El Patrimonio is Ashtrom's second solar project in Texas, marking a key achievement for the company that further deepens its presence in the ERCOT market. The completion of the PPA is expected to accelerate the project's development and construction processes. The solar project is expected to be constructed in Bexar County, Texas, with a planned capacity of approximately 150 megawatts (AC).
In addition to delivering electricity to San Antonio, the El Patrimonio project will support the local economy and community through educational activities. Ashtrom will establish an annual scholarship program, offer field tours of the El Patrimonio site for local students, and host job fairs on-site. Through these efforts, Ashtrom aims to enhance community knowledge of renewable energy and the role people can play in its future.
About Ashtrom Renewable Energy
Ashtrom Renewable Energy is delivering clean energy at scale. We build best-in-class renewable energy projects in the United States and around the globe. With a hands-on, risk-informed approach that emphasizes strategic and cost-effective execution, the company is an independent power producer (IPP) led by a team of energy experts with decades of experience in solar and wind siting, development, construction, financing, and operation. Ashtrom Renewable Energy leverages the financial stability and culture of excellence cultivated by Ashtrom Group (TASE: ASHG), a leading infrastructure, construction, and real estate development company with a 60-year legacy of success. With a development pipeline of ~1.8 GWdc in the U.S. and ~2.5 GWdc worldwide, Ashtrom Renewable Energy is poised to rapidly scale its development and investment activities in the U.S. market for the long term. Learn more about Ashtrom Renewable Energy at https://www.ashtromrenewableenergy.co.il/en
About Ashtrom Group
Ashtrom is one of Israel's leading construction and real estate companies whose shares are traded on the Tel Aviv Stock Exchange 90 index The group operates in several operating sectors: Construction and infrastructure contracting in Israel - including, inter alia, residential and infrastructural contract constructions; Franchise - participation in tenders and executing planning, operations and financing activities for large-scale infrastructure and residential projects; Housing entrepreneurship in Israel, through Ashdar, a subsidiary that is a leader and among the oldest companies in the field; Investment and entrepreneurial real estate, through Ashtrom Properties, a subsidiary operating in Israel, Germany and England, holding and managing shopping malls and commercial centers, office buildings and employment centers, industrial structures and more; Industries - mainly manufacturing, marketing and selling raw materials to the construction industry and importing and marketing finishing products for the construction industry; Construction and infrastructures contracting abroad, as well as residential real estate development in the U.S. and Europe - performed by Ashtrom International; Renewable energy - investment in wind, solar, storage and other energy related projects in Israel and worldwide. Ashtrom Group chairperson is Mr. Rami Nussbaum, and the group's CEO is Mr. Gil Gueron.
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