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.
Wood Mackenzie's global LCOE analysis shows four-hour battery storage is now cheaper than open-cycle gas turbines across all 43 modeled markets, with costs falling further by 2035. Solar PV is the lowest-cost generation technology in most regions, while onshore wind leads in five markets. Battery storage and renewable energy costs continue declining due to manufacturing scale and technological advances.