Wood Mackenzie says four-hour batteries now undercut gas turbines in 43 markets
That shifts new power planning toward batteries and solar, with North America’s existing utility-scale solar projects partly shielded for now.
Wood Mackenzie says four-hour battery storage has become cheaper than open-cycle gas turbines in all 43 markets it surveyed, a shift that matters for data centers and utilities looking for new power capacity. The report also finds solar is now the least expensive new generation option in every market in the survey. In North America, utility-scale solar has some near-term protection because 168 gigawatts can still benefit from safe-harbor provisions in the One Big Beautiful Bill, which preserved tax credits for projects that started or finish by the end of 2027. Wood Mackenzie expects battery costs to keep falling while gas turbine electricity gets more expensive, and it says four-hour batteries could be 33% cheaper than gas peaking in the Middle East and Africa by 2035.
Why it matters
For data centers and utilities seeking new capacity, the cost case is moving away from open-cycle gas turbines and toward storage and solar. Wood Mackenzie says the gap is likely to widen as battery costs fall and gas-turbine power gets more expensive, which could reshape which projects are cheapest to add. In North America, 168 gigawatts of utility-scale solar still has some near-term protection, so the immediate impact will not be the same everywhere.
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Sources
- TechCrunch