3 minTesla signs 25 GWh Megapack deal with NatPower for battery parks in the UK and Italy
Developer NatPower has agreed a multi-year deal with Tesla for more than 25 GWh of battery storage across five sites in Britain and Italy, worth an estimated $4-5 billion to build. It is one of the largest storage orders ever announced in Europe.
Tesla Energy has landed one of the biggest battery storage orders Europe has seen. Renewable energy developer NatPower has signed a multi-year agreement with Tesla for more than 25 GWh of battery storage in the United Kingdom and Italy.
The deal covers five initial projects. NatPower describes them as the first phase of a much larger programme that aims for more than 100 GWh in total.
The key facts
- Size: more than 25 GWh of battery storage in the first phase.
- Locations: five sites in the UK and Italy. The split between the two countries has not been made public.
- Construction value: an estimated $4-5 billion (about £3-3.8 billion).
- Expected revenue: more than $15 billion over 20 years, according to the parties' projections.
- Customers: the sites are meant to serve energy-hungry industrial users, including data centres.
What Tesla delivers
This is more than a battery order. Tesla will supply its Megapack systems and also handle engineering, procurement and construction, known in the industry as EPC. On top of that, Tesla will run the batteries on electricity markets through Autobidder, its trading software, and offer long-term revenue warranties. NatPower will own and operate the projects.
Tesla's vice president of energy and charging, Mike Snyder, pointed to the company's "vertically integrated offering": hardware, software, construction, trading and service from one supplier. NatPower chief executive Fabrizio Zago said the sector still struggles to deliver infrastructure on time, and presented the deal as a way to fix that.
Why the structure is unusual
According to NatPower, this is the first time battery procurement, financing and construction have been arranged across several countries under a single framework. The agreement also covers reserving factory capacity, grid connections, permits and financing. Grid access in particular is a bottleneck for big batteries in both Britain and Italy, where projects can wait years for a connection.
The scale for Tesla
To put 25 GWh in perspective: Tesla's Megafactory in Lathrop, California, produces about 40 GWh of Megapacks a year. If the whole order were built in one year, it would take more than 60% of that plant's output. In practice the deliveries will be spread over several years.
The order also comes at a useful moment. Tesla's storage business has had a softer start to 2026. Deployments in the first quarter were lower than a year earlier, energy revenue fell 12% year on year, and Tesla has warned that competition from Chinese suppliers would squeeze margins this year. A multi-billion-dollar order with software and service attached helps to secure future volume.
Why it matters
Europe needs much more storage to balance growing amounts of solar and wind power, and data centres want reliable power around the clock. Big, long-term framework deals like this one show how Tesla wants to compete: not only on the price of a battery container, where Chinese rivals are cheaper, but on the full package of building, running and trading the system.
What to watch next
- Where the five sites are and how much capacity goes to the UK and to Italy.
- When construction starts and which Megapack version will be used.
- Whether NatPower's wider 100 GWh plan leads to further orders.
