TESLA and ContourGlobal Sign Long-Term Power Agreement Covering 1 Terawatt-Hour/Year for Sterling Renewable Project

ContourGlobal announced the execution of a large-scale, Power Purchase Agreement (PPA) with Tesla for Project Sterling, a landmark hybrid solar and battery energy storage project located in Arizona’s WAPA region, with firm transmission rights into California’s CAISO market. The agreement with Tesla covers ~1 TWh per year, representing around 90% of the project’s as‑generated annual output, and will provide long‑term renewable energy.

Project Sterling is a large-scale hybrid project combining 509 MWdc/ 450 MWac of solar PV with 360 MW / 1.4 GWh of battery energy storage capacity, with an expected annual energy output of more than 1.1 TWh. Once operational, it will be ContourGlobal’s largest renewable asset to date.

Acquired in the development stage in December 2024, the project has since been reshaped by ContourGlobal’s in-house Business Development, Engineering, Procurement, and Commercial teams specifically to meet the offtaker’s requirements. Substantial construction activity began in 2025 through off-site physical work of significant nature, including procurement of major equipment in June. On-site construction is scheduled to commence later in the year, and commercial operation (COD) is targeted for 2028.

“After starting operations of our first renewable plant in the U.S. in 2025, we are now moving ahead with the construction of our largest renewable project globally, located in one of the country’s most dynamic energy markets”, commented Antonio Cammisecra, Chief Executive Officer of ContourGlobal. “Securing our biggest PPA ever - and one of the largest of its kind in U.S. renewable history - with an iconic customer like Tesla, a true symbol of the global energy transition, is a testament of our ability to deliver tailor-made solutions to our customer’s energy needs. This milestone represents a remarkable achievement of our commercial team which spearheaded a company-wide effort to strike a major deal like this one.”

Strategic Location and Advanced Project Design

Located in Arizona and physically connected to the Western Area Power Administration (WAPA) grid, Project Sterling holds firm point-to-point transmission rights to access California’s CAISO and will be pseudo-tied, enabling it to serve Tesla’s needs.

ContourGlobal | http://www.contourglobal.com/