ContourGlobal announced the completion of a Power Purchase Agreement with Tesla for Project Sterling, a hybrid renewable energy project located in Arizona’s WAPA region with transmission access to California’s CAISO market. The agreement commits Tesla to purchasing roughly 1 terawatt-hour per year, which represents approximately 90 percent of the project’s expected annual generation.
Project Sterling combines 509 megawatts of solar photovoltaic capacity with 360 megawatts of battery energy storage, totaling 1.4 gigawatt-hours of storage capacity. The facility is designed to generate more than 1.1 terawatt-hours of electricity annually and will serve as ContourGlobal’s largest renewable energy asset upon completion.
ContourGlobal acquired the project in its development phase in December 2024, subsequently redesigning it to align with Tesla’s operational requirements. The company completed off-site procurement activities throughout 2025, including major equipment orders in June of that year. On-site construction is scheduled to begin later this year, with the facility targeted to begin commercial operations in 2028.
The project benefits from firm transmission rights connecting it to both the Western Area Power Administration grid and California’s CAISO market through a pseudo-tie arrangement. ContourGlobal’s Chief Executive Officer characterized the agreement as a milestone achievement, noting it represents one of the largest power purchase agreements in U.S. renewable energy history and follows the company’s initial U.S. renewable plant that commenced operations in 2025.
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