Doral Energy Leads AI-Driven Renewable Energy Revolution in the US Market

In Israel, Doral Energy continues to be a powerhouse in the renewable energy world. The group operates hundreds of interconnected green electricity projects, including facilities that integrate extensive energy storage systems. In tandem with the significant momentum in the local market, Doral established its US operations, Doral LLC, about 5 years ago. Doral LLC has recently posted impressive results, positioning itself among the leading solar energy development companies in North America. The company recently raised $400 million in capital from APG, a leading investment firm.

“Doral LLC was founded in 2019 as a partnership between Doral Group and our U.S. partner,” says Yoni Hantis, deputy CEO of Doral Group. “The company started from scratch, and while other U.S. companies were acquiring various green energy platforms, we took a counter-intuitive and entrepreneurial approach, independently approaching farmers to gain access to land. We took this step thinking it would maximize our value in light of the company’s significant comparative advantage—the ability to develop the land and facilitate maturation and construction. Our approach has proven effective. Our relationships with farmers now provide a huge comparative advantage in the U.S. market.”

(source: Doral)

You run similar operations in Israel. What do you think is the biggest difference between Israel and the US?

“Mainly the size of the farmland. Israel is a small country with limited land, but in the US there are private landowners with huge tracts. So, for example, our flagship project in Indiana covers 13,000 acres, which is the size of Tel Aviv or Manhattan. It is the largest project of its kind in the US – generating 1.6 GW, and we have other large projects in states like Pennsylvania, Wisconsin, Ohio and others, all progressing nicely. The project in Indiana is already one-third complete – 480 MW – and the system will soon be connected to the local utility.”

One of the first to recognize Doral LLC’s success in the US was Migdal Insurance, which partnered with Doral in the US in 2021, committing to invest $350 million in the company. Doral LLC recently announced another spectacular transaction – a minority equity round of $400 million – a very impressive result in the US market. The newly invested capital enables it to create an additional 2 gigawatts of projects. Throughout this period, the company has signed financing agreements with major US financial entities such as Bank of America and Deutsche Bank. Doral LLC currently has a project backlog of over 14 gigawatts in 24 different US states. This is an incredible number achieved in just 5 years.

As the company soared into the U.S. market, S&P Global ranked it among the top 10 solar energy development companies in the U.S. “Our success is due to a number of key factors that set us apart from other players in the market,” Hantis says. “First, unlike most, we know how to work with the individual farmer. We talk to farmers personally and walk through the process from A to Z. Second, we have proven capital and financial strength, giving our partners the confidence that we can deliver on our commitments and deliver innovative projects. These strengths underpin the company’s success in acquiring land and connecting to the grid—two key elements in creating these megaprojects.”

(source: Doral)

“Another factor that relates to the uniqueness of the US market is the huge data centers that are being built all over the US, mainly serving high-tech companies, and AI companies in particular. These centers consume a lot of electricity and need our green and cost-effective solutions. We can say that the US market has been waiting for this innovation and I am glad that we are at the forefront of the global green energy revolution. Incidentally, the numbers speak for themselves, with Goldman Sachs recently reporting that by 2030, the US will require ~$20 billion in renewable energy investments to meet the consumption of green electricity, a trend driven by the growing AI sector.”

Why the Artificial Intelligence Sector?

“Because it is fundamentally oriented towards sustainability. It needs huge data centers that consume huge amounts of electricity, and its consumption is very monotonous and there are no extreme phenomena. So green energy is profitable for it and for companies developing solar systems. The fact that we have priority on the grid gives us a huge competitive advantage, and the fact that we are an Israeli entrepreneur leading this revolution in the US is a source of great pride.”

The article was created in cooperation with Doral