Independent energy infrastructure developer NatPower and American multinational company Tesla have signed a landmark multi-year agreement to deploy 25 GWh of battery energy storage capacity across Italy and the United Kingdom, marking the first phase of a broader deal that could see more than 100 GWh of storage developed at an estimated cost of between US$4 billion and US$5 billion.
The first phase of the battery project will use Tesla’s Megapack storage technology and energy trading software. Additionally, five initial projects planned under the first deployment phase. The companies also estimate the full program could generate more than US$15 billion in revenue over a 20-year period.
Growing Battery Storage Investment Across Europe
The partnership comes as European countries accelerate investments in battery energy storage systems (BESS) to support the rapid expansion of renewable energy generation. With increasing penetration of wind and solar power, grid operators are seeking large-scale storage solutions capable. They aim to balance intermittent generation, enhance grid reliability and reduce curtailment.
NatPower’s agreement with Tesla also positions the company among the emerging developers seeking to build continent-scale storage portfolios. By combining Tesla’s Megapack technology with integrated energy trading capabilities, the partners aim to create a standardized and scalable development model that can be replicated across multiple markets.
According to NatPower Chief Executive Officer Fabrizio Zago, the collaboration addresses one of the industry’s biggest challenges. The companies believe the partnership creates a framework that sees to project financing, technology deployment and operational optimization.
Scope of US$5bn Battery Storage Deal Agreed by Tesla and NatPower
The first phase of the program will involve the deployment of 25 GWh of battery storage capacity across selected sites in Italy and Britain.
Key project details include:
- 25 GWh of battery storage in phase one
- Five initial battery storage projects planned
- Use of Tesla Megapack battery systems
- Integration of Tesla’s energy trading and optimization software
- Long-term development target exceeding 100 GWh
- Estimated total program cost of US$4-5 billion
- Potential revenue exceeding US$15 billion over 20 years
Technology and Operations
Tesla’s Megapack platform has become one of the world’s most widely deployed utility-scale battery storage technologies, mirroring the success of the company’s EV batteries.
Under the agreement, Tesla will not only provide battery hardware but also supply proprietary software that manages electricity market participation. The technology also determines when to charge batteries using low-cost electricity and when to discharge stored energy to maximize value during higher-priced periods.
This approach is expected to improve project economics while helping electricity systems manage growing volumes of renewable generation.
Tesla, NatPower Battery Storage Deal: Fact Sheet
Locations: Italy and the UK
Phase One Capacity: 25 GWh
Project Type: Utility-scale Battery Energy Storage System (BESS)
Long-Term Target: More than 100 GWh
Initial Projects: Five
Estimated Investment: US$4-5 billion
Technology: Tesla Megapack
Revenue Potential: More than US$15 billion over 20 years
Status: Partnership agreement reached June 2026
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