International power producer ContourGlobal has signed a long-term corporate power purchase agreement (cPPA) with Tesla in the United States, which 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 360 MW/1.4 GWh of battery energy storage capacity with 509 MW (dc)/450 MW (ac) of solar. 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.
Looking ahead to its deal with Tesla, Antonio Cammisecra, CEO, ContourGlobal, praised the company’s commercial team for securing the high-profile offtaker.
He added that the PPA is the company’s biggest to date. “Securing our biggest PPA ever – and one of the largest of its kind in U.S. renewable history – with an iconic customer like Tesla, a true symbol of the global energy transition, is a testament of our ability to deliver tailor-made solutions to our customer’s energy needs.”
Besides the U.S. market, the developer is active in Chile, Romania, Bulgaria, Greece, Italy, and the United Kingdom among others. It announced its formal entry into the UK market with an 800 MW project pipeline and the purchase of the 2 GWh Wallace BESS in Scotland in June.
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