NatPower, Tesla agree to deploy more than 25 GWh of BESS in Europe

NatPower and Tesla have signed a strategic agreement to develop battery energy storage projects with a combined capacity exceeding 25 GWh across Europe. The first phase covers five projects in Italy and the United Kingdom, including a site in Priolo, Sicily, under NatPower’s European storage platform, which aims to exceed 100 GWh in total capacity.

NatPower said it will own and operate the projects, while Tesla will supply its Megapack battery systems alongside engineering, procurement, and construction (EPC) services. Tesla will also provide energy trading capabilities through Autobidder, its optimization and trading platform.

NatPower said the agreement establishes an integrated operating model that combines electricity infrastructure, industrial capabilities, and advanced trading solutions, rather than serving solely as a technology supply arrangement. The company said the structure is designed to provide the flexibility and financial resilience needed to bring large-scale BESS projects into operation.

The first implementation phase includes five projects across Italy and the United Kingdom. NatPower estimated the aggregate construction value of the full project pipeline at between $4 billion and $5 billion, while projected revenues over the next 20 years are expected to exceed $15 billion.

The company said the agreement links procurement, financing, and project execution within a single framework. It added that the approach addresses five operational priorities: securing manufacturing capacity, obtaining grid access and connections, managing permitting and regulatory compliance, arranging financing structures, and coordinating execution schedules.

NatPower said the planned assets, with more than 25 GWh of combined capacity, should function as strategically important grid infrastructure capable of supporting grid stability, optimizing renewable energy generation, and providing dispatchable capacity for high-demand consumers, including data centers and energy-intensive industries.

Fabrizio Zago, chief executive officer of NatPower, said the agreement is intended to bridge the gap between project development and execution, addressing persistent challenges in delivering energy infrastructure on schedule despite the availability of capital and technology. He said the partnership with Tesla creates a model that aligns financing with delivery and could be replicated in other markets.

Mike Snyder, vice president of Tesla Energy & Charging, said Tesla would contribute a vertically integrated offering encompassing hardware, software, construction, trading optimization, and operational services. He said the aim is to accelerate project deployment and support efficient performance throughout the assets’ operating lives.

From pv magazine Italia