Overview
- NatPower and Tesla announced a multiyear supply-and-execution agreement on Tuesday to deliver an initial 25 GWh of Megapack battery storage across five projects in Italy and the United Kingdom.
- Under the deal NatPower will own and operate the projects while Tesla will supply Megapack units, provide engineering, procurement and construction services, deploy its Autobidder trading software, and offer long-term revenue warranties.
- The first phase carries estimated construction costs of $4 billion to $5 billion and the partners say the wider programme targets more than 100 GWh with potential revenues above $15 billion over 20 years.
- The projects remain pre-construction and face execution risks including permitting, grid connections and allocation of factory output, with the 25 GWh order representing a large share of Tesla’s known Lathrop factory capacity.
- If built, the sites are meant to stabilise grids and firm more wind and solar power for large users such as data centres, while the integrated model signals a shift toward bundled hardware, software and long-term revenue contracts in Europe.