Global power producer ContourGlobal has signed a long-term corporate power purchase agreement (cPPA) with Tesla, securing a major offtake deal for its flagship Project Sterling hybrid solar and battery storage facility in Arizona, United States.
Under the terms of the landmark deal, Tesla will acquire the vast majority of power generated by Project Sterling, covering approximately 1 terawatt-hour (TWh) of electricity annually and accounting for around 90% of the project’s yearly on-site generation output. The bundled energy solution includes electricity and renewable energy certificates (RECs), supporting Tesla’s operational power needs across its California facilities.
Scheduled for on-site construction commencement later in 2026, Project Sterling is a large-scale integrated renewable energy facility featuring 509 MW (dc)/450 MW (ac) of solar generation capacity paired with 360 MW/1.4 GWh of battery energy storage. The project is interconnected to Arizona’s Western Area Power Administration (WAPA) grid and holds firm point-to-point transmission rights to access California’s CAISO grid, with pseudo-tie connectivity to the CAISO system to enable reliable long-term renewable power delivery.
Set to enter commercial operation in 2028, Project Sterling will stand as ContourGlobal’s largest renewable energy asset upon completion. The company has already initiated off-site preparatory works, including equipment procurement, starting in 2025.
Antonio Cammisecra, CEO of ContourGlobal, highlighted the significance of the strategic partnership, crediting the company’s commercial team for securing the high-profile industry offtaker.
“This represents our largest PPA to date and ranks among the most prominent renewable power purchase agreements in U.S. renewable energy history,” Cammisecra stated. “Partnering with Tesla, an iconic leader of the global energy transition, validates our capability to develop and deliver customized renewable energy solutions that precisely meet clients’ operational and sustainability requirements.”
