Tesla and NatPower signed a multiyear agreement to deploy more than 25 gigawatt hours of battery energy storage capacity across Italy and the U.K., the companies said Tuesday.
Altogether, the initiative is structured around five initial projects, with a long-term ambition to surpass 100 GWh of installed capacity, according to Reuters
The companies put total construction expenditure at between $4 billion and $5 billion and said the portfolio could generate revenues of more than $15 billion across a 20-year horizon. Tesla’s Megapack systems will be the hardware of choice at each site, selected by NatPower for deployment across all planned facilities. Alongside the hardware, the arrangement brings in Tesla’s Autobidder platform, a trading optimization tool designed to identify advantageous moments in electricity markets to buy or sell power.
NatPower will own and operate the projects. Tesla will supply hardware, construction services, and trading optimization under what the companies described as a single integrated framework spanning multiple countries, the company said. “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,” NatPower CEO Fabrizio Zago said in a statement.