Texas grid-scale battery capacity has surged from 200 megawatts to 17 gigawatts in recent years, but rapid market saturation has caused revenues to plummet by over 80%. The future remains uncertain as data center growth could potentially revive grid volatility and improve battery economics.
Battery storage is now cheaper than open-cycle gas turbines across all 43 markets surveyed by Wood Mackenzie, with battery costs expected to continue declining while gas turbine expenses rise. Solar remains the cheapest new power source globally, though U.S. solar faces near-term tariff pressures. The shift away from gas turbines will be most pronounced in the Middle East, Africa, and China by 2035.