ContourGlobal announced the signing of a large-scale power purchase agreement (PPA) with Tesla for Project Sterling , a historic hybrid solar and battery storage project located in the Arizona region and physically connected to WAPA, with firm transmission rights to the California CAISO market.
The agreement with Tesla covers approximately 1 TWh per year , equivalent to about 90% of the project's estimated annual production, and will provide long-term renewable energy.
Project Sterling is a large-scale hybrid project combining 509 MWp/450 MWac of photovoltaic capacity with 360 MW/1.4 GWh of battery storage capacity , with an expected annual energy production exceeding 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 redesigned by ContourGlobal's internal Business Development, Engineering, Purchasing and Commercial teams, specifically to meet the buyer's requirements.
Substantial construction activity commenced in 2025 with significant off-site physical work, including the acquisition of major equipment in June. On-site work is scheduled to begin later this year, while commercial operation (COD) is planned for 2028.
"Following the start of operations of our first renewable plant in the United States in 2025, we are now moving forward with the construction of our largest renewable project globally, located in one of the most dynamic energy markets in the country," commented Antonio Cammisecra, CEO of ContourGlobal .
"Securing our largest PPA to date — and one of the most significant in the history of renewables in the United States — with an iconic customer like Tesla, a true symbol of the global energy transition, is a testament to our ability to deliver solutions tailored to our customers' energy needs," he added.
He continued: "This milestone represents a remarkable achievement by our commercial team, who led a company-wide effort to close a deal of this magnitude."
Strategic location and advanced project design
Located in Arizona and physically connected to the Western Area Power Administration (WAPA) grid, Project Sterling has firm point-to-point transmission rights to access the California CAISO market and will be connected via pseudo-tie, enabling it to supply Tesla's needs.