Arizona launches large-scale solar project to supply 90% of power to Tesla

ContourGlobal announced a 509-megawatt solar power plant equipped with a large-scale battery storage system, spanning 2,000 acres. Under a long-term agreement, Tesla will receive 90% of the facility's expected power output. "Project Sterling" broke ground on Oct. 6, officially launching the project. However, the facility is expected to begin operations in 2028. Once online, it will become ContourGlobal's largest renewable energy asset worldwide.

According to Electrek, Sterling is expected to generate more than 1.1 terawatt-hours (TWh) of electricity annually, enough to meet the yearly power needs of 100,000 to 120,000 residents.

Solar plant scale and technology

The facility is located in Mohave County, about 20 miles north of Lake Havasu City, spanning more than 2,000 acres and will be equipped with over 760,000 solar modules and more than 300 battery storage containers. The storage system will use lithium iron phosphate (LFP) batteries with liquid cooling and integrated fire protection technology. These batteries can deliver full-load power for approximately four hours. The combined solar and storage system can provide up to 16 hours of clean power daily. Arizona has become a pioneer in solar development, with 13,198 megawatts of direct current (MWdc) of solar installed statewide, and approximately 18.23% of its electricity now coming from solar, powering nearly two million homes.

PV Magazine noted in its reporting that "this partnership strengthens Arizona's role in regional grid reliability." Project Sterling is expected to add 509 megawatts of DC solar capacity to Arizona, corresponding to approximately 450 megawatts of alternating current (AC) capacity. The associated battery energy storage system is designed to deliver 360 megawatts of power and store approximately 1.4 gigawatt-hours (GWh) of electricity. According to PV Magazine USA, the project expands ContourGlobal's U.S. portfolio to 2.4 gigawatts of thermal, renewable and storage capacity, whether operational or under construction.

Impact on local economy

The facility will connect to the Western Area Power Administration's transmission network and has secured transmission rights to access the California Independent System Operator's electricity market, Electrek reported. In addition, Project Sterling will create approximately 400 construction jobs annually for the local area. Construction includes a new 5.2-mile access road, named Polaris Road, connecting the site to Topock and Kingman along historic Route 66. The project is privately funded and has secured an equity bridge loan from an international banking consortium to finance construction.

According to Electrek, ContourGlobal will supply Tesla with more than 1 terawatt-hour (TWh) of clean electricity annually under a long-term corporate power purchase agreement (PPA). This is one of the largest corporate solar-plus-storage PPAs signed in the U.S. for a single hybrid renewable energy plant. The agreement covers approximately 90% of the facility's expected output. ContourGlobal President and CEO Antonio Cammisecra told PV Magazine USA: "Our team designed this project around the customer's specific needs, enabling it to deliver up to 16 hours of reliable clean power per day."