Tesla and NatPower Sign $5 Billion Megapack Deal to Build Over 25 GWh of Grid Storage Across Italy and the UK

Overview

Independent power producer NatPower and Tesla have signed a strategic agreement covering more than 25 GWh of battery energy storage systems in Europe, according to NatPower. The deal, announced on June 23, 2026, will begin with five projects sited in Italy and the United Kingdom and forms the first delivery phase of a broader program targeting more than 100 GWh of storage capacity, as reported by Energy-Storage.News.

What We Know

Under the agreement, Tesla will supply its Megapack battery storage systems alongside engineering, procurement, and construction services, plus bankable trading services through its Autobidder platform with long-term revenue warranties, according to Energy-Storage.News. The projects will be owned and operated by NatPower, the company said.

Across the full scope, the aggregate construction value is estimated at US$4-5 billion, with projected revenues exceeding US$15 billion over 20 years, according to Electrek. The first phase covers the five initial projects in Italy and Britain.

Tesla’s Autobidder platform supplies the software layer of the partnership, providing trading technology that, as Electrek describes it, “manages charging and discharging to capture price swings on the grid.”

Fabrizio Zago, CEO of NatPower, framed the deal as a move from planning to delivery. “The significance of this agreement lies in its ability to turn project development into concrete execution,” Zago said, according to NatPower. In comments reported by Energy-Storage.News, he added that “the sector has access to technology and capital, but still struggles to deliver infrastructure consistently and within the required timelines.”

Mike Snyder, VP of energy and charging at Tesla, said the company “is excited to partner with NatPower on this long-term agreement,” adding that NatPower has “a strong vision for scaling battery deployments quickly across Europe,” according to NatPower.

The agreement comes as Tesla’s energy storage business has emerged as one of its strongest-performing segments. The company deployed “a record 46.7 GWh of energy storage in 2025, up roughly 48% year-over-year,” with first-quarter 2026 deployments reaching approximately 14.4 GWh, according to Electrek. Tesla last year unveiled the Megablock and Megapack 3, which Electrek describes as “pre-integrated systems designed to cut installation time and deploy more energy faster.”

What We Don’t Know

Neither company has published a project-by-project breakdown of capacity, siting, or commissioning dates for the five initial installations beyond their location in Italy and the United Kingdom. The US$4-5 billion construction figure and the US$15 billion revenue projection are described as estimates spanning the full program rather than committed, contracted amounts, and the timeline for reaching the program’s stated 100 GWh target has not been detailed.

Analysis

The structure of the deal is as notable as its scale. Rather than a one-off hardware purchase, the partnership bundles Megapack supply, construction, and Autobidder-based trading optimization under a single multi-jurisdiction framework, with NatPower retaining ownership and operation. For Tesla, the agreement extends the reach of an energy division that has outpaced its automotive business in recent quarters, anchoring a multi-year European pipeline to its strongest product line. For NatPower, tying manufacturing allocation directly to project delivery is a bet on solving the execution bottleneck Zago described, in a European market where developers increasingly compete for grid connections and supply-chain certainty rather than for capital alone.