NatPower and Tesla announced that they have entered into a multi-year supply and execution agreement covering more than 25 GWh of battery energy storage systems across European markets.
The projects under the agreement will be located in Italy and the United Kingdom and will be owned and operated by NatPower. Tesla will provide Megapack battery energy storage systems, along with engineering, procurement, and construction services, bankable trading services, and long-term revenue warranties through Tesla’s Autobidder platform.
The agreement goes beyond technology supply by creating an integrated structure that combines electrical infrastructure, industrial capacity, and advanced energy trading models. The companies said this structure is designed to provide the flexibility and certainty needed to finance and deliver projects at NatPower’s scale.
Through the collaboration, Tesla will provide its latest product offerings while integrating technological and financial services. NatPower said the agreement strengthens its European leadership in energy infrastructure by supporting the development of advanced storage assets that can optimize electrical capacity over the long term.
The agreement is also designed to address the growing need for power system flexibility as Europe navigates the energy transition and rising electricity demand tied to artificial intelligence, electrification, renewable intermittency, and energy-intensive industrial operations.
The first delivery phase of the program includes five initial projects in Italy and the United Kingdom. These projects are part of a broader program with a total capacity target exceeding 100 GWh.
Across the full scope, aggregate construction value is estimated at $4 billion to $5 billion, with expected project revenues exceeding $15 billion over 20 years.
The companies said the agreement represents a turning point for battery energy storage deployment by coordinating procurement, financing, and execution across multiple jurisdictions within a single integrated framework. This structure links manufacturing allocation directly to project delivery and addresses key operational requirements, including manufacturing capacity reservation, grid access and connection, permitting and regulatory compliance, financial structure, and execution scheduling.
At more than 25 GWh, the storage capacity covered by the agreement is expected to serve as part of the systemic grid infrastructure. The deployed assets are expected to provide grid stabilization, optimize renewable generation, and provide dispatchable capacity for high-demand users such as data centers and energy-intensive industrial operations.
NatPower said the agreement creates a replicable model for how industrial capacity can be reserved, allocated, and converted into operating infrastructure in a market where energy demand is growing faster than the ability to deliver new capacity.
KEY QUOTES:
“The significance of this agreement lies in its ability to turn project development into concrete execution. 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. Today, with this strategic agreement, we are launching the delivery of the first five major projects developed over recent years in Italy and the United Kingdom. This is a historic moment for our companies, not only because of the scale of the agreement, but also because of the impact it will have on the energy infrastructures.”
Fabrizio Zago, CEO of NatPower
“Tesla is excited to partner with NatPower on this long-term agreement. They have a strong vision for scaling battery deployments quickly and efficiently across Europe. Our team of experts are helping accelerate these deployments through our vertically integrated offering, providing hardware, software, construction, trading optimization and service to bring projects online faster and ensure they operate smoothly throughout the lifetime of the product.”
Mike Snyder, VP of Tesla Energy & Charging
