Tesla and NatPower have signed a deal to build large-scale battery storage projects in Italy and the UK, targeting over 100 GWh of capacity.
Tesla and independent energy firm NatPower have reached an agreement to develop large-scale battery storage projects in Italy and Britain, marking the first phase of a project worth up to $5 billion.
According to Reuters, the initial phase includes building 25 gigawatt-hours (GWh) of battery storage capacity across five projects. The broader programme aims to exceed 100 GWh in total storage capacity.
The projects are expected to help Europe’s growing renewable energy transition by supporting balance intermittent power generation from solar and wind sources.
Under the multi-year agreement, NatPower will use Tesla’s Megapack battery storage systems as well as Tesla’s energy trading technology, which helps manage electricity buying and selling.
The companies said construction for the first phase is expected to cost between $4 billion and $5 billion. They added that the project could generate more than $15 billion in revenue over 20 years.
“The sector has access to technology and capital but still struggles to deliver infrastructure consistently,” said Fabrizio Zago, CEO of NatPower.
He added that the partnership with Tesla creates an ecosystem that can be replicated across multiple markets.
