Wood Mackenzie: Batteries Now Cheaper Than Gas Turbines in 43 Markets

Four-hour duration battery storage is now cheaper than open-cycle natural gas turbines in every one of the 43 markets surveyed by Wood Mackenzie, the energy research firm said in a report dated October 9, 2026.

The report states that battery electricity costs are expected to keep falling while gas turbine costs rise in the coming decades, widening the gap between the two technologies.

Wood Mackenzie attributes part of the pressure on gas turbine pricing to AI data center developers, which the report says are driving up prices by buying up available turbine models. Open-cycle gas turbines now take two to four years to procure, and waitlists for closed-cycle turbines extend into the early 2030s.

Solar remains the cheapest form of new power in every market covered by the survey, according to the report.

Regional pressures on solar and storage

Wood Mackenzie noted that solar prices in North America are under pressure from tariffs and import restrictions, though it said 168 gigawatts there is largely protected from near-term price shocks by safe-harbor provisions in the One Big Beautiful Bill, which kept tax credits for projects starting construction or completed before the end of 2027.

The firm also forecast that four-hour batteries in the Middle East and Africa will be 33% cheaper by 2035, displacing gas peaking. In China, it said, energy storage costs are 55% below those of its neighbors.