Tesla and NatPower have signed a multi-year agreement to build 25 GWh of battery energy storage across five projects in Italy and the United Kingdom. The initial phase carries an estimated construction price tag between $4 billion and $5 billion, making it one of the largest battery storage commitments in European history.
The deal goes well beyond the first 25 GWh. Both companies say this is the opening act of a broader strategy targeting over 100 GWh of total battery capacity. If the revenue projections hold, the partnership is expected to generate upwards of $15 billion over a 20-year horizon.
What the deal actually involves
NatPower will integrate Tesla’s Megapack systems, the company’s large-scale lithium-ion battery product designed for utility-grade energy storage. Think of Megapacks as shipping-container-sized batteries that sit next to power grids and absorb excess electricity when supply is high, then release it when demand spikes.
Beyond the hardware, NatPower will also use Tesla’s advanced energy trading software. The software decides when to buy cheap electricity from the grid and when to sell it back at a premium.
