Four hour battery storage now cheaper than gas peaking plants in all 43 markets studied, Wood Mackenzie finds
By Eve
Four hour battery energy storage systems have become cheaper than open cycle gas turbines across all 43 markets examined in a Wood Mackenzie report, while solar was the cheapest new electricity generation option in 43 of 48 markets studied. Battery storage costs in the Middle East and Africa are expected to fall 33% from 120 dollars per megawatt hour in 2026 to 80 dollars by 2035, with China showing the lowest costs at 55% below the Asia Pacific average of 134 dollars (excluding China). Single axis tracking solar plants remain the cheapest new generation technology in 43 of 48 markets.
Why it matters
The cost crossover means grid operators and project developers can now deploy battery storage to meet peak demand more economically than building new gas peaker capacity, reshaping procurement strategies for flexible generation. Falling storage costs strengthen the business case for pairing batteries with solar or wind projects, a key consideration for CPOs planning depot charging or grid services revenue.
Source
- Original title
- “Güneş enerjisini depolamak artık doğal gazla elektrik üretmekten daha ucuz”
- Published
- 12 October 2026
- Updated
- 13 October 2026
In this story
- Topic
- Grid & Energy
- Place
- Global
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