Wood Mackenzie: Battery Storage Cheaper Than Gas Turbines in 43 Markets
What happened
Wood Mackenzie surveyed markets across the Middle East, North America, and Africa on October 9, 2026, finding that four-hour duration batteries are less expensive than open-cycle gas turbines in all 43 markets surveyed. The consultancy predicts that the cost of electricity from batteries will continue to decline, while electrons from gas turbines will become more expensive in the coming decades.
From techcrunch.com
Why it matters
The report highlights that rising energy prices and high electricity demand from AI data centers have driven up prices for gas turbines. Supply chain issues, including two-to-four year procurement times for open-cycle turbines and waitlists extending into the early 2030s for closed-cycle turbines, are spiking prices for new natural gas power plants.
From techcrunch.com
Who's involved
- Middle EastGeopolitical region surveyed for energy market trends
- North AmericaContinent surveyed for energy market trends
- AfricaContinent surveyed for energy market trends
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- NigeriaSpeculative
Rising gas turbine costs might increase operational costs for Nigerian utilities.
- LG Energy SolutionSpeculative
The finding that batteries are cheaper than gas turbines could drive massive demand for ESS manufacturing.
- EnbridgeSpeculative
The prediction that the U.S. natural gas market will narrow might pressure gas infrastructure providers.
- AfricaSpeculative
Declining battery storage costs might displace gas peaking power generation in Africa.
- ShellSpeculative
The decline in renewable energy costs might challenge traditional fossil fuel operations for Shell.
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- Energy transition costs may influence Federal Reserve's inflation outlookRising energy costs and structural shifts could influence the Federal Reserve's inflation outlook.Likely
- Shell's fossil fuel operations may face long-term cost challengesShell's fossil fuel operations may face long-term cost challengesPossible
- Global energy transition may reshape Japan's import reliance on natural gasGlobal energy transition may reshape Japan's import reliance on natural gasPossible
- Battery storage could shift Nigeria's gas peaking power relianceNigeria's energy costs may face pressure as battery storage displaces gas peaking powerPossible
- Cheaper battery storage may challenge ExxonMobil's gas market positionCheaper battery storage may challenge ExxonMobil's gas market positionPossible
Keep exploring
The entities involved
-
Middle East
geopolitical region encompassing Egypt and most of Western Asia, including Iran
-
North America
continent in the Americas
-
Africa
continent