NatPower and Tesla Launch First Phase of $5 Billion Battery Storage Project

NatPower and Tesla have signed an exclusive agreement to develop the first phase of a utility-scale battery storage programme worth up to $5b billion for Italy and Britain.

As part of the agreement, Tesla will deliver 25 GWh of battery storage capacity using its Megapack systems to help European nations develop their energy storage capabilities, growing dependence on renewable power.

The deal, which spans multiple years, also includes Tesla’s energy trading software in order to help operators know when they should store, purchase and sell electricity depending on market conditions.

Long Term Expansion

Five initial projects in Italy and the UK make up the initial phase of the programme. In the future, the companies plan to expand this program to more than 100 GWh of storage capacity. The construction cost is estimated at $4 billion-$5 billion.

The projects are expected to make more than $15 billion in revenues over two decades, according to the estimates given.

NatPower Chief Executive Officer Fabrizio Zago stated the energy storage industry has been able to secure necessary technology and funding, but faces many challenges getting projects over the line on time. The collaboration with Tesla sets an alignment between financing and execution, he said, so new projects such as this one are easier to take on in other regions.

Source: Reuters 

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