Four-hour battery energy storage systems are now cheaper than new open-cycle gas turbine peaking plants across global markets, according to an analysis published by Wood Mackenzie in October 2026.

Key Market Shifts

• Cost Advantage: Four-hour battery storage has undercut open-cycle gas turbines (OCGT) in all 43 global markets where both technologies were modeled.
• Drivers of Change: Expanding battery manufacturing scale has driven storage prices down, while gas-turbine supply shortages and high fuel-price volatility have inflated the cost of thermal peaking generation.
• Regional Dynamics: In regions like the Middle East and Africa, utility-scale solar combined with storage is rapidly displacing the economic case for new gas peaking capacity.