Tesla Signs Power Agreement for 450-Megawatt Arizona Solar Farm
The Project Sterling facility in Mohave County is expected to come online in 2028 and will include 1.4 GWh of battery storage.
Tesla has secured a long-term power purchase agreement for approximately 90% of the expected annual output from a massive solar and battery storage project currently under construction in Arizona.
What Happened
ContourGlobal held a groundbreaking ceremony on October 6 for Project Sterling, a 450-megawatt (MW) solar farm located about 20 miles north of Lake Havasu City in Mohave County. The project, situated on more than 2,000 acres in the Mojave Desert, is expected to come online in 2028. It will feature over 760,000 solar panels with a combined capacity of 509 MW DC, which converts to 450 MW of AC capacity for the grid. Additionally, the site will include over 300 battery storage containers using lithium iron phosphate (LFP) technology with liquid cooling and integrated fire protection, capable of delivering up to 360 MW and storing approximately 1.4 gigawatt-hours of electricity. This configuration allows the facility to discharge at full power for about four hours and provide clean electricity for up to 16 hours a day. Once operational, the plant is expected to generate more than 1.1 terawatt-hours (TWh) of electricity annually, with Tesla’s agreement covering about 1 TWh per year plus associated renewable energy certificates.
Why It Matters
This deal highlights the deepening integration of renewable energy infrastructure into the supply chains of major electric vehicle manufacturers. By locking in the majority of Project Sterling’s output, Tesla is securing a significant portion of its clean energy needs for its operations, potentially including vehicle production or charging networks. The project is set to become ContourGlobal’s largest renewable energy asset worldwide and will connect to the Western Area Power Administration’s grid, with secured transmission rights into the California Independent System Operator’s market. This infrastructure expansion supports the broader transition to grid stability through large-scale storage, a critical component as renewable penetration increases across the western United States. Construction is expected to employ around 400 workers through 2028, involving local crews for civil works and the development of a new 5.2-mile access road.
The Bottom Line
Project Sterling represents a major step in utility-scale renewable energy deployment in Arizona, with Tesla committing to the majority of its future power generation. The privately financed project, supported by an equity bridge loan from international banks, is on track for a 2028 launch.
