Battery Storage Now Cheaper Than Gas Power in All 43 Markets

The clean energy revolution just hit a breakthrough moment that changes everything about how we'll keep the lights on.

Battery storage systems that can discharge electricity for four hours now cost less to build and operate than gas turbines in all 43 markets analyzed by Wood Mackenzie. Just a few years ago, batteries were considered too expensive for widespread use.

"This economic shift is decisive and widening," said Ahmed Jameel Abdullah, a principal analyst at Wood Mackenzie. Gas turbine shortages and rising fuel prices are making fossil power more expensive, while expanding battery factories keep pushing storage costs down.

Solar power with single-axis tracking systems has become the cheapest new electricity source in 43 of 48 markets worldwide. When paired with batteries, these systems can now deliver power around the clock without burning any fuel.

The numbers tell a stunning story of progress. In the Middle East and Africa, solar costs are heading toward just $20 per megawatt hour in Saudi Arabia and the UAE by 2033. Battery storage costs in that region will drop 33% by 2035, falling from $120 to $80 per megawatt hour.

China leads the world with storage costs 55% below the Asia Pacific average. Latin America's exceptional sunshine means solar already beats every other power source, and battery costs there will plunge 42% by 2060.

The Bright Side

While North America faces temporary headwinds from trade policies and tariffs, the long-term trend points clearly toward cleaner, cheaper power. Federal tax credits from the Inflation Reduction Act help offset current supply chain challenges. By 2060, storage costs in the region are expected to drop another 10%.

Europe's high carbon costs make fossil fuels increasingly uncompetitive there. Even a temporary 2% uptick in battery prices this year won't stop the region's march toward renewable-plus-storage systems.

The shift goes beyond simple cost comparisons. Grid operators worldwide are rethinking how they plan power systems from the ground up. New gas peaking plants no longer make economic sense in most markets.

"It is about storage and solar together redefining what the economics of a power system look like," Abdullah explained. The combination is closing off the economic case for new gas capacity globally.

The transition comes at a critical time as data centers and artificial intelligence drive surging electricity demand. Rather than building more fossil plants to meet that growth, utilities can turn to proven renewable-plus-storage solutions that cost less and produce zero emissions.

This milestone proves that solving climate change doesn't require sacrifice or compromise on economics. The cleanest option is now the cheapest option, and that advantage will only grow stronger in the years ahead.