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Tesla Energy lands 3 GWh Megapack deal for Italian battery projects1:08

Tesla Energy lands 3 GWh Megapack deal for Italian battery projects

Energy · September 11, 2026

Italian developer Zhero and H1 Holdings will buy 3 GWh of Tesla Megapacks under long-term contracts. It is another sign that grid batteries are becoming one of Tesla's steadiest businesses.

Tesla Energy has signed a deal to supply 3 GWh of Megapack battery storage to Italian developer Zhero and its partner H1 Holdings. The agreement was reported on September 11.

The deal

  • Size: 3 GWh of total storage capacity.
  • Location: projects in Italy.
  • First phase: 200 MW of developments that are ready to build.
  • Structure: long-term purchase contracts.

No completion dates were given.

Why the structure matters

Long-term supply contracts make Zhero less dependent on Italian support schemes for storage, and help it move from developing projects to owning and operating them. Zhero has a pipeline of about 1.5 GW of battery projects and wants a bigger share of Italy's commercial and industrial market.

Megapack 3 in the background

The deal lands as Tesla ramps up Megapack 3, the newest version of its grid-scale battery, which recently entered production in Texas. Tesla says it cuts installation time and cost compared with earlier versions.

Part of a bigger European push

Italy is becoming an important market for Tesla Energy. An earlier deal with NatPower, worth around $5 billion, covers more than 25 GWh of storage in the UK and Italy. Elsewhere, Tesla has projects ranging from New Zealand to a 500 MWh site in Queensland, Australia.

Why it matters

While car sales go up and down, energy storage has become one of Tesla's most consistent growth stories. Grids need batteries to absorb solar and wind power, and multi-gigawatt-hour contracts like this one give Tesla Energy years of predictable demand.

Sources

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