AUSTIN, Texas — Tesla and independent energy firm NatPower have struck a deal to build 25 gigawatt-hours of battery storage in Italy and Britain, the first phase of a European program worth up to $5 billion. Under the multiyear agreement announced Tuesday, NatPower will deploy Tesla Megapack systems and run Tesla trading software to decide when to buy and sell electricity, pushing Tesla deeper into one of the fastest-growing corners of the energy market.
A program aiming past 100 GWh
The first phase covers five initial projects totaling 25 GWh across the two countries, at a construction cost of roughly $4 billion to $5 billion. That is only the beginning: NatPower says the broader program ultimately targets more than 100 GWh of storage capacity, with revenue that could exceed $15 billion over 20 years. For scale, 25 GWh alone is more than half of everything Tesla deployed globally in all of 2025, a stretch in which the company has built a commanding lead, as covered in our report on Tesla holding 82 percent of the energy storage market.
The agreement pairs Tesla hardware with its software stack. Beyond supplying Megapacks, Tesla is providing the trading technology that manages charging and discharging to capture price swings on the grid, turning each battery site into a revenue-generating asset rather than passive backup capacity.
Why Europe is buying batteries
The timing is no accident. Countries across Europe are racing to add storage to balance the rollout of wind and solar, which generate power when the weather cooperates rather than when the grid needs it. Italy and the UK have both leaned on batteries to firm up renewables and avoid wasting clean energy.
