NatPower and Tesla have entered into a multi-year agreement to deliver more than 25 gigawatt-hours of battery energy storage systems (BESS) across Europe. Under the deal, NatPower will own and operate installations in Italy and the United Kingdom, while Tesla will supply its Megapack energy storage units. In addition to hardware, Tesla will provide engineering, procurement and construction services, along with bankable trading support and long-term revenue warranties via its Autobidder platform.
The collaboration extends beyond technology supply, combining electrical infrastructure, manufacturing capacity and advanced energy-trading models. This integrated approach aims to provide the financing certainty and operational flexibility needed to develop large-scale projects. By leveraging Tesla’s vertically integrated offering—encompassing hardware, software, construction, trading optimization and ongoing service—NatPower seeks to reinforce its leadership in European energy infrastructure and support the continent’s energy transition.
Initially, five projects in Italy and the UK will form the first delivery phase of a broader program targeting over 100 gigawatt-hours of storage capacity. The full scope is expected to involve $4–5 billion in construction spend, with projected revenues exceeding $15 billion over 20 years. For the first time at this scale, BESS procurement, financing and execution have been coordinated under a single framework that addresses manufacturing reservation, grid access and connection, permitting and regulatory compliance, financial structuring, and execution scheduling.
With more than 25 GWh of capacity, the assets will serve as systemic grid infrastructure—stabilizing networks, optimizing renewable generation and providing dispatchable power to high-demand users such as data centers and energy-intensive industries. The agreement is designed to meet accelerating demand pressures driven by electrification, renewable intermittency and increasing energy consumption from artificial intelligence.
Fabrizio Zago, CEO of NatPower, said the arrangement creates an ecosystem that aligns capital and execution across multiple markets, enabling consistent delivery on critical timelines. Mike Snyder, Tesla’s vice president of Energy & Charging, added that the partnership will accelerate deployments and ensure smooth operation throughout the projects’ lifetimes.
Source: NatPower
