daily · Grid & Storage

Wood Mackenzie models four-hour storage below gas peaking costs in 43 markets

The October 8 consultancy release compares modeled costs, not retail electricity bills. Its solar findings cover a different 48-market set and do not say solar wins everywhere.

By Greener Numbers Editorial Team · Published October 10, 2026 · Updated 10/10/2026

Wood Mackenzie's October 8 release says four-hour battery storage is less expensive than open-cycle gas turbines in all 43 markets where both technologies were modeled. This is the consultancy's levelized-cost analysis, not a test of every battery project or proof that every household's electricity bill will fall.

The comparison specifically concerns four-hour storage and open-cycle gas peaking. It should not be extended to every gas plant, an unlimited storage duration or a claim that a battery produces its own fuel. A modeled cost comparison and a resource's ability to meet a particular grid need remain different questions.

The release attributes the changing cost picture to gas turbine shortages and fuel volatility alongside expanding battery manufacturing. Those are the consultancy's explanations. The release does not provide a project-specific contract price for a household, utility or data center considering a purchase.

The same release says single-axis tracking solar is the lowest-cost new-build technology in 43 of 48 modeled markets, with onshore wind leading in five. That is a different denominator from the storage comparison. The source does not support saying solar is the cheapest technology in every surveyed market.

For the Middle East and Africa, Wood Mackenzie projects four-hour storage costs falling from $120 per megawatt-hour in 2026 to $80 by 2035, a 33 percent decline. These are regional modeled costs and a forecast, not a quoted retail tariff or a completed future saving.

Limits: the public release summarizes regional reports and does not expose every modeling assumption or replace project-level analysis of charging energy, connection costs, operating needs and policy conditions. It notes regional tariffs, supply constraints and tax-credit changes. Readers should keep a modeled technology comparison separate from a guaranteed financing outcome or customer bill reduction.

Official source: woodmac.com ↗