Battery storage cheaper than gas turbines worldwide

Wood Mackenzie’s latest report reveals that four-hour battery storage is now more cost-effective than open-cycle gas turbines in all 43 markets analyzed. This shift is driven by rising gas turbine costs and falling battery storage prices due to expanded manufacturing. The Middle East and Africa, where utility-scale solar is already the cheapest option, are expected to see a 33% drop in storage costs by 2035, making it the preferred choice over gas peaking. China leads in storage cost efficiency, with prices more than 55% below the Asia Pacific average, highlighting the impact of manufacturing scale on global costs. The economic advantages of battery storage and solar are reshaping power system planning globally, with significant implications for renewable energy integration and gas turbine displacement.