The levelized cost of four-hour battery storage is now lower than the cost of natural gas peaker turbines across global markets, according to a new analysis by Wood Mackenzie.
In the United States, battery storage with a 2026 commercial operation date can cost 65% to 75% less than new open-cycle gas turbines.
Rising data-center power demand has created large backlogs and pushed gas-turbine prices higher. At the same time, expanding global battery manufacturing has continued to lower storage costs.
Backlogs at gas-turbine manufacturers including GE Vernova, Siemens Energy and Mitsubishi range from 35 GW to 116 GW, reinforcing the long-term economic case for battery storage.