Tesla signs PPA for large solar and storage project in Arizona
Key Takeaways
- •Project Sterling is a 509-MW solar project paired with 1.4 GWh of energy storage in Arizona.
- •Tesla signed a power purchase agreement with ContourGlobal for electricity from the project.
- •Construction began in 2025, and commercial operation is targeted for 2028.
- •The project is connected to the WAPA grid and has transmission rights to reach California’s CAISO.
- •The deal expands Tesla’s renewable power supply and reflects the financing role of long-term PPAs for large projects.
Tesla has signed a power purchase agreement with ContourGlobal for electricity generated by Project Sterling, a 509-MW solar project paired with 1.4 GWh of energy storage in Arizona.
Construction on Project Sterling began in 2025 with off-site physical work in order to meet subsidy deadlines. Commercial operation is targeted for 2028.
“Securing our biggest PPA ever … is a testament of our ability to deliver tailor-made solutions to our customer’s energy needs,” said Antonio Cammisecra, CEO of ContourGlobal. “This milestone represents a remarkable achievement of our commercial team which spearheaded a company-wide effort to strike a major deal like this one.”
Project Sterling is located in Arizona and is physically connected to the Western Area Power Administration (WAPA) grid. The project holds firm point-to-point transmission rights to access California’s CAISO and will be pseudo-tied, allowing it to serve Tesla’s needs.
The deal adds another large renewable power arrangement to Tesla’s energy supply portfolio at a time when utility-scale solar paired with storage is increasingly used to provide more flexible output than solar alone. For developers, long-term PPAs can help support financing for large projects; for buyers with sizable electricity demand, they can provide a contracted source of supply tied to a specific project.
News item from ContourGlobal