NatPower, Tesla Reach Deal on First Phase of $5 Billion Battery Storage Plan

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  • Twenty-five GWh to be built at sites in Italy, Britain
  • Part of 100 GWh buildout that could cost $4 ​bln-$5 bln
  • Targets more than $15 billion in revenue ‌over 20 years

LONDON, June 23 (Reuters) – Independent energy firm NatPower and Tesla (TSLA.O) said on Tuesday they ​had reached a deal to build 25 gigawatt ​hours of battery storage in Italy and Britain, ⁠the first phase of a project worth up ​to $5 billion.


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Countries across Europe are ramping up battery ​storage projects to help balance the rollout of intermittent renewable power capacity.

Under the multiyear agreement, NatPower will use Tesla’s Megapack battery ​storage system.

NatPower will also use Tesla’s trading technology, which ​manages when to buy and sell electricity.

Five initial projects will ‌be ⁠built, the first phase of a programme that ultimately aims to exceed 100 GWh of storage capacity, at a construction cost of $4 billion to $5 billion, the ​companies said. They ​added that ⁠revenue will potentially exceed $15 billion over 20 years.

“The sector has access to technology ​and capital but still struggles to ​deliver infrastructure ⁠consistently and within the required timelines. What we have built with Tesla is an ecosystem that enables ⁠alignment ​between capital and execution, and that ​can be replicated across multiple markets,” said Fabrizio Zago, CEO of ​NatPower.

Reporting by Simon Jessop in London Editing by Matthew Lewis

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