NatPower and Tesla Agree on a $5 billion Battery Storage Plan

Tesla and independent energy business NatPower announced on Tuesday that they had come to an agreement to construct 25 gigawatt-hours of battery storage in Italy and Great Britain. This is the first stage of a project that could cost up to $ billion.

To help balance the deployment of intermittent renewable energy capacity, European nations are moving forward with battery energy storage projects.

NatPower will use Tesla’s Megapack battery storage system as part of the multi-year arrangement.

Tesla’s trading system, which controls when to buy and sell electricity, will also be used by NatPower.

According to the corporations, the first phase of a program that eventually seeks to surpass 100 GWh of storage capacity would involve the building of five first projects, which will cost between $4 and $5 billion. They said that over a 20-year period, revenue might surpass $15 billion.

Despite having access to finance and technology, the industry nevertheless finds it difficult to build infrastructure on time and consistently. Fabrizio Zago, CEO of NatPower, stated, «What we’ve built with Tesla is an ecosystem that aligns capital with execution and can be replicated across multiple markets.»