Arava Power acquires OCI Energy

Arava Power, an Israeli solar developer, has finalized an agreement to acquire a 50% stake in the 670 megawatt direct current (MWdc) La Salle Solar facility from Texas-based OCI Energy. Set to be the largest single-site project for either company, the La Salle facility is located approximately 60 miles northeast of Laredo, Texas. The project, still under development, is slated to commence commercial operations in 2028.

The terms of the acquisition remain undisclosed, but both companies will share responsibility for financing, constructing, owning, and operating the solar facility. This acquisition extends Arava Power’s footprint in the Texas renewable energy market, building on its previous collaboration with OCI Energy. Their past ventures in Texas include the 270 MW Sunray solar farm, operational since 2024, following Arava's acquisition of the development rights in 2021, and a 347 MWdc project with ING Capital-backed financing secured by a 20-year power purchase agreement.

Strategically, the acquisition underscores Arava Power and OCI Energy's commitment to scaling up renewable energy offerings in a state with rapidly growing solar capabilities. OCI Energy president Sabah Bayatli highlighted the La Salle Solar project's significance, describing it as a "milestone" in meeting the growing grid demands with high-quality projects. The facility is poised to supply enough electricity to power approximately 100,000 homes, further cementing Texas as a linchpin in OCI Energy’s portfolio.

This move comes amid a broader transition within Texas’s energy market, where solar power is increasingly outpacing traditional coal-fired power. According to the U.S. Energy Information Administration, the annual solar energy output within the Electric Reliability Council of Texas (ERCOT) is anticipated to surpass coal by 2026, reaching 99 terawatt-hours in 2027.

As Arava Power and OCI Energy proceed with La Salle Solar, their focus will be on navigating regulatory approvals and ensuring project timelines align with expected energy demands. Both companies are advancing significant solar projects: Arava Power now manages a portfolio surpassing 2 gigawatts of generation capacity across Israel and North America, while OCI Energy aims for up to 10 gigawatts by 2028. The success of this partnership could define competitive dynamics in the Texas solar market and signal further expansions.