Clean-energy developer NatPower and Tesla have signed a multi-year supply and execution agreement to deploy more than 25 gigawatt-hours (GWh) of battery energy storage systems across Italy and the United Kingdom, one of the largest single grid-storage frameworks yet struck in Europe.
From manufacturing to the grid in one deal
Announced on 24 June 2026, the agreement pairs NatPower's renewable and storage project pipeline with Tesla's Megapack hardware and software. Tesla will supply its grid-scale battery systems and provide engineering, procurement and construction services along with bankable trading through its Autobidder platform, which automatically dispatches stored energy into electricity markets. Phase one covers five projects across the two countries, with both companies signalling intent to grow the partnership beyond 100GWh over time.
The companies estimate aggregate construction value across the full scope at $4 billion to $5 billion, with project revenues potentially exceeding $15 billion over 20 years. NatPower says coordinating procurement, financing and execution across multiple jurisdictions under a single framework, and linking factory allocation directly to project delivery, is a first at this scale.
Stabilising renewable-heavy grids
The deployed batteries are aimed at grid stabilisation, optimising renewable generation and providing dispatchable capacity for high-demand users including data centres and energy-intensive industry. As Italy and the UK add solar and wind, large blocks of storage become essential to balance supply and smooth out intermittency.
Storage as critical infrastructure
The deal underscores how grid-scale batteries are emerging as foundational infrastructure for the energy transition, sitting alongside other capacity bets such as new battery chemistries for data centres and the wave of small modular reactor projects being lined up to feed Europe's rising electricity demand. For Tesla, the agreement extends a run of mega-scale storage wins; for NatPower, it accelerates a build-out that could make it one of Europe's largest independent storage operators.
Reporting based on coverage from Energy-Storage.news, Rigzone and NatPower.