Tesla Inc. has signed a long-term electricity purchase agreement with developer ContourGlobal, a project supported by investment company KKR & Co. According to the terms of the contract, Tesla will purchase 90 percent of the energy generated from the Project Sterling facility located in Arizona. The station is planned to be put into commercial operation by 2028. Its design capacity will be 509 megawatts of peak solar generation combined with 360 megawatts of energy storage systems providing four-hour backup storage. The financial details of the deal, which will be the first in the history of the interaction between these two companies, have not been publicly disclosed by the parties, but such agreements are traditionally concluded for a period of ten to fifteen years.

The generated electricity will be integrated into a network operated by the Western Electricity Supply Administration, which will provide physical access to the California state grid. This strategic decision is becoming particularly relevant against the background of stable macroeconomic trends. According to the U.S. Energy Information Administration, average retail electricity prices this year are projected at a record high of 14.22 cents per kilowatt hour, which is 4.3 percent higher than in the previous period and a historic high since the late 1990s. Such agreements allow the corporation to effectively hedge the risks of further tariff increases and ensure long-term stability of operating expenses.

For ContourGlobal, Project Sterling will be the largest renewable asset in its current investment portfolio. The organization acquired this facility at the end of 2024 and plans to independently sell the remaining 10 percent of the generated capacity on the wholesale market. The implementation of such a large-scale infrastructure highlights the growing demand from technology giants for reliable and environmentally friendly energy sources. The integration of solar panels with battery storage systems makes it possible to smooth out consumption peaks and ensure continuity of supply, which is a critical factor for Tesla's energy-intensive production and research processes.