Expansion Targets 25 GWh of Battery Capacity
Independent energy developer NatPower and Tesla (NASDAQ:TSLA) have entered into an agreement to deploy 25 gigawatt hours of battery storage capacity across Italy and the United Kingdom, marking the opening phase of a broader programme that could be worth as much as $5 billion.
The project comes as European countries accelerate investments in energy storage infrastructure to support the growing integration of renewable energy sources and improve grid stability.
Tesla Megapack Technology Selected
Under the long-term partnership, NatPower will deploy Tesla’s Megapack battery storage systems across the planned facilities.
The agreement also includes the use of Tesla’s energy trading platform, which helps optimize electricity purchases and sales by determining the most effective times to trade power in the market.
Initial Developments Form Part of Larger Strategy
The companies plan to begin with five projects that will serve as the foundation of a much larger storage programme.
Over time, the initiative is expected to surpass 100 GWh of installed storage capacity, with total construction costs estimated at between $4 billion and $5 billion.
According to the companies, the portfolio could generate more than $15 billion in revenue over a 20-year period.
Focus on Bridging Capital and Infrastructure Delivery
The partners believe the collaboration addresses one of the key challenges facing the energy storage industry: converting available funding and technology into operational infrastructure at scale.
“The sector has access to technology and capital but still struggles to deliver infrastructure consistently and within the required timelines. What we have built with Tesla is an ecosystem that enables alignment between capital and execution, and that can be replicated across multiple markets,” said Fabrizio Zago, CEO of NatPower.
Energy Storage Becomes a Key European Priority
The agreement reflects the increasing importance of battery storage as Europe continues expanding renewable generation capacity.
As solar and wind power become a larger part of the energy mix, large-scale storage systems are viewed as essential tools for balancing supply and demand, improving grid resilience and supporting long-term energy transition goals.