Tesla has partnered with a global renewable energy platform to develop a Megapack battery energy storage system in Scotland, Electrek reported.
In December 2025, Tesla and Matrix Renewables announced that they were teaming up to enhance grid stability in the United Kingdom. The companies signed an Engineering, Procurement, and Construction agreement to commission a 500 megawatt/2-hour (1 gigawatt-hour) battery energy storage system in Eccles, Scotland.
According to Matrix Renewables, this will be the company's first standalone BESS project in the U.K. The project will also support the U.K.'s Net Zero 2050 and 2035 clean energy goals.
"We are excited to support Matrix Renewables with their entry into the U.K., bringing Tesla's track record in the market together with Matrix Renewables' expertise and vision. We highly value the partnership with their team and look forward to executing this landmark project together," Mike Snyder, Energy Vice President at Tesla, said in a statement.
Although Tesla continues to work toward its goals, 2025 was a tough sales year for the company. The electric vehicle giant struggled to keep up with surging competitors in many key automotive markets across Europe.
However, Tesla has shown signs of redirecting its primary focus to its AI and battery technology. The BESS project in Scotland could even become a sign of things to come for Tesla.
"This is fantastic news for Tesla. They will end up being a renewable energy storage powerhouse," one commenter wrote on the Electrek article.
Tesla first introduced its Megapack battery storage technology in 2019. The lithium-ion battery storage system was designed not only to help stabilize energy grids but also to reduce reliance on traditional natural gas-based power plants.
The company noted that its Megapack facility can use stored excess solar or wind energy to support the grid's peak loads. As energy bills continue to climb, battery storage could help reduce expensive demand charges.
"As the world's transition to sustainable energy continues to accelerate, the market for advanced battery storage solutions is growing rapidly," Tesla wrote.
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