- Arava Power launches its 270 MW SUNRAY solar plant in Texas, marking its entry into the US market with a $330 million investment.
- The plant, developed with Paz Group and financed by Menora Mivtachim, covers 1,200 acres and features over 500,000 solar panels, generating 515 GWh annually.
- Arava Power plans further expansion in the US, targeting a total solar capacity of 1.3 GW, despite facing regulatory and competitive challenges.
Arava Power has officially launched its SUNRAY solar power plant, marking its entry into the US market. The 270-megawatt (MW) photovoltaic facility, developed in collaboration with Paz Group and funded by Menora Mivtachim, represents a $330 million investment.
The SUNRAY plant covers 1,200 acres and features over 500,000 solar panels. It will generate 515 gigawatt-hours (GWh) of electricity annually. The plant will sell half of this output under a 12-year power purchase agreement and offer the remaining half on the Texas open market.
Arava Power and Paz Group acquired the SUNRAY project from OCI Energy in 2021 and secured financing in 2023. They expect to begin the commercial operation after completing construction and obtaining permits in 2024.
The project benefits from a diversified financing approach. Nomura Securities International, Inc. provides $215 million in construction financing. A consortium including Ha’poalim Bank and BHI offers a senior loan of $70 million. Morgan Stanley and another investor contribute $150 million in private equity. This broad financial backing underscores strong confidence in the project and Arava Power’s capabilities.
Arava Power aims to strengthen its position in the competitive US renewable energy market with SUNRAY. The company plans further expansion, targeting a total solar capacity of 1.3 gigawatts (GW). This growth will rely on meticulous market analysis and strategic local partnerships.
Despite facing fluctuating regulations and intense competition, Arava Power demonstrates its ability to adapt and manage risks through the successful rollout of SUNRAY. The project highlights the flexibility of Israeli firms in navigating US financial and regulatory landscapes.
SUNRAY could set a benchmark for future international solar projects, particularly in financial structuring and strategic partnerships. The insights gained from this project will guide Arava Power in managing future ventures within the evolving US energy sector.