Tesla will buy around 1 TWh per year of electricity from ContourGlobal’s hybrid solar and storage project in the US state of Arizona, which is due to begin commercial operations in 2028.
International power producer ContourGlobal has signed a long-term corporate power purchase agreement (cPPA) with Tesla in the United States. The cPPA will see Tesla purchase the majority of generated power from ContourGlobal’s Project Sterling hybrid solar and storage facility in Arizona.
The deal covers approximately 1 TWh of power per year, representing around 90% of Project Sterling’s as-generated annual output.
Set to begin on-site construction this year, Project Sterling combines 450 MW of solar with 360 MW/1.4 GWh of battery energy storage capacity. It is connected to Arizona’s Western Area Power Administration (WAPA) grid and holds firm point-to-point transmission rights to access California’s CAISO grid. It is also pseudo-tied to the CAISO grid and will provide long-term renewable energy to Tesla’s Californian operations through the PPA with bundled electricity and RECs.
It will be ContourGlobal’s largest renewable asset when it is completed. Commercial operation is targeted for 2028 and on-site construction is due to begin later this year. The company started off-site construction tasks such as procuring equipment in 2025.
