Energy projects developer NatPower and Tesla have agreed a multi-year deal targeting the potential construction of more than 100GWh of BESS systems across European markets.

An initial five projects under the deal are planned for Italy and the UK — covering more than 25GWh of capacity — to be owned and operated by NatPower.

Tesla will provide its Megapack battery tech in addition to other services, including financial, engineering, procurement and construction, under the terms of the agreement announced on June 23.

Aggregate construction value across the full scope of the agreement is estimated at $4-5 billion and revenues expected from projects is set to exceed $15 billion over 20 years.

The partners said BESS systems will be delivered and allocated through a coordinated system that directly links production, financing and execution on a multi-country basis — claimed to be the first time at this scale — “moving beyond an opportunistic and local approach”.

Key areas of focus include manufacturing capacity reservation, grid access and connection, permitting and regulatory compliance, financial structure and execution scheduling and timeline management.

“The agreement goes beyond the supply of technology alone, establishing an integrated structure combining electrical infrastructure, industrial capacity and advanced energy trading models, which provide the flexibility and certainty required to finance and deliver projects of NatPower’s scale.”

NatPower manages its operations from five main offices across Asia, Europe and the US. CEO Fabrizio Zago said his company and Tesla had established an ecosystem that enables alignment between capital and execution, and that can be replicated across multiple markets.