Israeli renewable energy developer Arava Power has achieved a significant milestone with the official launch of its first utility-scale solar project in the United States, SUNRAY. Located in Uvalde County, Texas, the 270-megawatt project is a testament to Arava Power’s commitment to expanding its expertise and portfolio beyond its home country.
SUNRAY is the result of a collaborative effort between Arava Power and Paz Group, Israel’s leading oil and gas retailer, with funding provided by Israeli insurance company Menora Mivtachim. The project, developed at a total cost of $330 million, spans approximately 1,200 acres and is leased for a cumulative period of 50 years.
Equipped with over 500,000 solar panels, SUNRAY is expected to generate a substantial 515 gigawatt-hours of electricity per year. This clean energy production will not only power 43,000 homes in the San Antonio area but also prevent the emission of 225,000 metric tons of carbon dioxide annually.
The project’s success is attributed to the strong partnerships and collaborations forged between Arava Power and various institutions from the United States, Israel, and globally. Arava Power’s co-founder, David Rosenblatt, highlighted the significance of this project, stating, “This isn’t just about breaking new ground in the United States—it’s about demonstrating the power of our platform from development through asset management over our history and across geographies.”
The development of SUNRAY was not without its challenges. Arava Power had to navigate through regulatory changes, a volatile inflationary environment, and a complex financing landscape. Despite these obstacles, the company successfully secured $215 million in construction financing fully underwritten by Nomura Securities International, Inc. (“Nomura”), and $70 million in senior debt from a consortium led by Nomura and including Bank Ha’poalim and BHI. Additionally, Morgan Stanley, as the Tax Equity partner, contributed approximately $150 million to the project.
The project’s success highlights the growing demand for renewable energy solutions and Arava Power’s commitment to playing a leading role in this transition. “Nomura is pleased to support Arava and Paz Group as they enter the US market and assist in working towards achieving a carbon-free grid,” said Vinod Mukani, Global Head of Nomura Infrastructure and Power Business (“IPB”).
SUNRAY marks a significant milestone for Arava Power’s U.S. vision, with a portfolio of projects in various stages of development totaling 1.3 gigawatts across the country. The company’s expertise, combined with its commitment to innovation and sustainable practices, positions it to continue expanding its footprint in the U.S. renewable energy sector.
This project also underscores the growing collaboration between Israeli and American companies in the renewable energy space, demonstrating the global nature of the transition towards a more sustainable future.
For more information about Arava Power and the SUNRAY project, please contact [email protected]
