Four-hour battery storage now beats gas peaking on cost globally

Wood Mackenzie’s latest global report on levelized cost of electricity (LCOE) shows that advancing technologies and market dynamics continue to drive divergent prices, with four-hour battery storage now less expensive than open-cycle gas turbines in all 43 markets where both technologies were modeled.

In the Middle East and Africa, where utility-scale solar already leads at US$37/MWh, four-hour storage is forecast to fall a further 33% to US$80/MWh by 2035, displacing gas peaking on cost across every gas market in the region.  China remains the global storage cost benchmark at more than 55% below the rest of Asia Pacific average, illustrating how manufacturing scale is redrawing the global cost map.

“This economic shift is decisive and widening,” said Ahmed Jameel Abdullah, principal analyst at Wood Mackenzie. “Gas turbine shortages and rising fuel volatility are driving up peaking costs, while expanding battery manufacturing continues to push storage costs down.”

Source and full article: https://www.woodmac.com/press-releases/four-hour-battery-storage-now-beats-gas-peaking-on-cost-globally/