Tesla Inc (NASDAQ:TSLA) and energy developer NatPower have signed a multi-year agreement covering more than 25 gigawatt-hours (GWh) of battery energy storage systems across Italy and the United Kingdom, marking the first phase of a broader European deployment program.
The initial stage includes five projects that will be owned and operated by NatPower. Tesla will supply its Megapack battery storage systems and provide engineering, procurement and construction services, along with energy trading capabilities through its Autobidder platform and long-term revenue warranties.
The companies said the agreement is part of a wider program targeting more than 100 GWh of storage capacity. Total construction costs for the full initiative are estimated at $4 billion to $5 billion, with projected revenue exceeding $15 billion over 20 years.
The battery installations are intended to support grid stability, improve the integration of renewable energy and provide dispatchable power for large electricity users, including data centers and industrial facilities.
"The sector has access to technology and capital but still struggles to deliver infrastructure consistently and within the required timelines,” NatPower CEO Fabrizio Zago said in a statement.
“What we have built with Tesla is an ecosystem that enables alignment between capital and execution, and that can be replicated across multiple markets.”
Tesla shares were down 4% at $388 following the announcement amid a broader downturn in tech stocks.