Tesla has signed a long-term agreement with ContourGlobal to purchase 90% of the electricity generated by the Sterling project, currently under construction in Arizona. The complex combines a 509 MW solar power plant with a 360 MW battery storage system. The facility is scheduled to come online in 2028.
The parties have not disclosed the financial terms of the deal. ContourGlobal intends to sell the remaining 10% of the output independently on the energy market. Although the contract duration has not been officially announced, such agreements typically span 10 to 15 years.
This arrangement will enable Tesla to secure a supply of renewable electricity at least through the end of the 2030s. For ContourGlobal—owned by the investment firm KKR—the Sterling project represents the largest renewable energy asset in its portfolio; the company acquired the project in late 2024.
The power plant will connect to the Western Area Power Administration grid, allowing electricity to be supplied not only within Arizona but also to the California market. The energy storage system is designed for four hours of operation and has a capacity of approximately 1,440 MWh, enabling solar energy to be fed into the grid even after sunset.
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