I’d like to take a moment to praise the writing here. Rigorous, dense, and well-organized; communicative rather than coughing up tables of raw figures in prose form.
I’d refer to the source studies, but at $9,990 per region… Ms Pickerel’s overview seems plenty informative for me.
Regarding EMEA:
> Grid-scale battery storage costs are now decisively cheaper than gas peaking across the region. [and price will fall another 33% in the decade ahead]. This shift means storage is displacing open-cycle gas turbines on cost in every gas market across the region, marking a significant structural turning point for power system planning across both the Gulf and Africa.
The analyst’s bottom line:
> From Latin America to Asia Pacific, the combination of falling storage costs and world-class renewable resources is closing off the economic case for new gas peaking capacity, while long-term contracted renewables increasingly set the ceiling rather than the floor on power costs.”
Heady times! For all the gnashing of teeth about regulating our way out of combustion-based production—it’s ultimately superior technology that’s ripened to displace gas peaker plants, no arm-twisting required. “Not with a bang, but a whimper”…
> In the Middle East and Africa, where utility-scale solar already leads at $37/MWh, four-hour storage is forecast to fall a further 33% to $80/MWh by 2035
I'm struggling to understand the numbers here. How does a fall of 33% on $37 make it $80?
I think the $37 might be the cost of producing the energy via solar, and it’s the grid-scale batteries that are expected to get cheaper:
> Four-hour storage reaches $120/MWh in 2026 and is forecast to fall 33% to $80/MWh by 2035, cementing its role as the enabling technology for solar and wind integration.
Cheap or not, solar isn’t dispatchable on demand, so in and of itself it doesn’t replace the role of a peaker plant. But now that the big batteries are a viable thing, solar-plus-battery is feasible to handle the parts of the demand curve that required open-cycle gas plants before.
Horses for courses, right? They build these entire peaker power plants to sit idle most of the time, just to handle the couple dozen or hundred hours of maximum load in the year.
4 hours at a time hopefully buys you your way through such a peak, even if it doesn’t get you through weeks at a time… and presumably you can top it up from base load after demand peaks for the day, right?
In the equatorial and desert regions they’re talking about, I think both seasonal supply changes and demand profile might be more consistent than, say, dreary cold parts of Europe..
That's a big part of what drives me crazy about the papers I've seen on this work. People like to quote some levelized price of energy and say "this costs less than an AP1000" and you never see modeling of "here's the price in California, here's the price in New York"
(3) annual variation (you might get 3x the sunlight in summer than winter? do you build 180 days of storage or do you overbuild solar systems 3x and get Casey Handmer to dream up something useful to do with that excess energy that doesn't have a stupendous capital cost?)
The "have a natural gas backup plan" is worse than people think for a lot of reasons, in terms of the laws of political science and economics you're going to find that that tail winds up wagging the dog, the whole market will get designed around the needs of those turbine owners, it's going to cost the same if they are running turbines for 5 minutes a year or 20 days a year, and ultimately you're never going to get rid of it. If you really plan to run the system 5 minutes a year what are the odds it will really work when you need it? You have to not just support the turbines you hardly ever use, pipelines you hardly ever use, drilling and storage operations for gas, etc.
Yeah I think it really only works well in the central latitudes. The American South, the tropics and equatorial regions, Southern Europe, etc. that get a lot of high-angle sunlight year-round.
Otherwise you need to deal with long distance power transmission across many political jurisdictions, or local generation for night or other low-solar times. To my mind, nuclear base load with solar and batteries used for things like charging cars or demand-shifting probably makes more sense. It's really a shame that we mostly withdrew from building nuclear plants for the past three or four decades; instead we have reached the point where we have to re-learn how or recreate the tooling needed to build them and they are still too damn expensive.
nuclear base load makes sense from a pure grid engineering PoV, which i think is why it appeals to so many HN folk. Sadly, it makes no sense economically anymore, so it will probably never be built at scale.
They quit building coal burning power plants in the US at the same time and for the same reason they quit building nukes…. The cost of the steam turbine and heat exchanges. I mean, the steam generators for a PWR are bigger than the reactor vessel, it is just insane to use hot water at high pressure to boil water at low pressure.
If nuclear is ever going to be competitive it is going to have to be some kind of reactor that runs at higher temperatures with a gas turbine power set. Could be a fast breeder or HTGR or molten salt but not water cooled. Anyway it is not a bird in the hand.
Ultimately though about 50% of the cost of a PWR is in the heat handling (heat exchangers and steam turbine) and the building costs to accommodate those systems. If the nuclear part was free they'd still struggle to compete -- the BWRX300 seems to get a lot of cost reduction by eliminating the pumps and heat exchangers and stuff and going to steel-concrete sandwich construction but to do better than that you have to really do something about that steam turbine.
For that matter, it's shocking how small the actual core is for FBRs. The capital cost of FBRs was long projected to be higher because traditionally you had to add a third cooling loop and some other systems but it is projected an sCO2 system today could be cheaper overall.
Never said we should not have been developing the technology. But even with the old PWR designs you're not pumping carbon into the atmosphere, which is the main point.
> (3) annual variation (you might get 3x the sunlight in summer than winter? do you build 180 days of storage or do you overbuild solar systems 3x and get Casey Handmer to dream up something useful to do with that excess energy that doesn't have a stupendous capital cost?)
How about overbuild and interconnect? You don't have to overbuild for your personal worst case if you can buy power from somebody else if it comes to it.
Sorry for the tangent but as a German I found it interesting (and somehow amusing) to learn that "Dunkelflaute" is an English "Lehnwort" (I couldn't find a proper English translation for that, either).
What political/economical problem? This has already been solved in most regulated markets. Capacity payments are already being made on many grids. Companies are already literally being paid for "doing nothing", being paid for being available for an unusual situation.
Renewables & batteries have high upfront costs but really low operating costs, so that's what you want supplying 90-98% of your power if your goal is lowest cost. (see Ember Energy reports). NatGas has low capital costs but relatively high operating costs, so yes, sitting idle and running a few days a year really is optimal.
My understanding is that the first number is the "cost per MWh generated by a PV plant", the second one is the "cost per MWh accumulated and then released by a 4-hour grid-scale battery plant"
What's the total acreage of lithium extraction ponds in China today?
As distinct, of course, from the artificial lake of sludge known as the Weikuang Dam, four square miles in size, holding rare earth processing sludge waste in Baotou (Inner Mongolia) which is not from lithium processing.
What percentage of China's land area do these tailing ponds amount to, is "great swathes" really a fair estimate?
Do you think that acreage will drop with the current rise in Direct Lithium Extraction (DLE: new technique that skips traditional evaporation ponds, using filters or membranes to pull lithium directly from brine. It's faster, uses less water, and works in areas with lower brine lithium concentrations.) ?
What's your worksheet on waste from fossil fuels V waste from battery production looking like, is it online for others to look at ?
The same as the ecological impact of constructing gas tanks and pipelines. Only using electricity from batteries doesn't have ecological harms, whereas burning gas does.
How so? Both require mining, separating metal from ore and so on. Steelmaking is done in blast furnaces that burn coal. Lithium can be refined by evaporating brine in large open ponds under sunlight.
- Worldwide Li-ion battery production per year: 35GWh
- Worldwide grid capacity: 5000GWs
- Lifetime of a specific cell in a grid scale battery: 20-30 years
- Current known reserves of Lithium worldwide at current usage rates: 80 years
So even if we magically mined all known Li reserves this year, it still would only be about 14% of the grid for 1 hour or about 9 minutes total for the entire grid. You don't actually need to backup the entire grid (only about 20-30% of it), but you need to do it for at least 4 hours. Basically, it isn't even close even if we only used Lithium for this use. You can get more with Na-ion, but if you think NPPs are dangerous (they aren't)...let's just say nobody would ever insure a grid scale Na-ion battery. Just one leak and it goes up with 1000s of tonnes of TNT of explosive force.
This entire article seems to be based on an assumption that the cost of batteries will go down 33% over the next 10 years because demand is so high, but costs of gas turbines will go up over the next 10 years because demand is so high.
Neither of these assumptions are based on anything other than "That's the number we had to put in to the model to get the conclusion we want".
The cost of batteries has gone down somewhere between 60-80% over the previous 10 years (and my understanding is that trend is expected to continue due to a combination of new technologies (e.g. Sodium Ion) and increased scale). So that one seems totally reasonable. A little conservative if anything.
Battery tech and production methods are still evolving and improving way faster than turbine tech and production. Meaning this is more than just production capacity.
> Every time the global cumulative battery production has doubled, the price has dropped by roughly 19%.
There are only a handful of gas turbine manufacturers left, with a manufacturing backlog of half a decade.
It is exceptionally obvious battery manufacturing will only continue to scale (TAM is global EV and stationary storage market), and gas turbine builders will hang on until the economics turn, which they have. Regardless, these trajectories will hold unless something exceptional occurs. Is it likely we’ll build more batteries faster? Yes. Is it likely these are the last three major gas turbine manufacturers to exist? Also yes. Last call for buggy whips.
Swanson's law and learning rates do seem to apply to batteries more as well as the fact that their no of cycles seem to be much longer than initially thought for LFP as well as storage focused Sodium ion batteries from CATL
Presumably that would favor large scale battery storage, right? If large scale battery storage is already cost competitive with turbines and there is still more low-hanging fruit, then presumably battery costs will continue to fall faster than for turbines?
That said, I doubt the cost of either of these technologies is driven so much by the technologies themselves so much as it is our ability to manufacture and install large volumes of them at scale. Presumably it's easier to mass-manufacture batteries in a big factory and then ship them to the site than it is to construct each gas peaker plant on location, and moreover it's probably easier (i.e. cheaper) to scale up the manufacturing process for batteries than it is to scale up the construction process for peaker plants.
> If large scale battery storage is already cost competitive with turbines and there is still more low-hanging fruit, then presumably battery costs will continue to fall faster than for turbines?
Yes, and this is the assumption that the comment I replied to seems to disagree with. I think the assumption is right and the disagreement is wrong.
> That said, I doubt the cost of either of these technologies is driven so much by the technologies themselves so much as it is our ability to manufacture and install large volumes of them at scale.
Deployment is part of the learning curve.
I think you're agreeing with me (and disagreeing with the comment I replied to) here :)
Supply is larger than demand for batteries and prices are going down. Demand is larger than supply for natural gas turbines and prices are going up.
But that's just the short term.
More importantly, I believe that manufacturers are more confident in the long term future of demand for batteries so are willing to continue to invest. People are going to be buying electric cars 10 years from now. The demand for gas turbines in 10 years seems a lot more murky.
SpaceX has promised to start making turbines, which would bring their price down. But it's an Elon Musk promise, so how much weight do you put on it?
Point on Musk's problematic delivery record. But for an extremely complex type of critical equipment, in a market this tight, I don't know if there's any provider you'd want to fully trust to deliver on time.
> But it's an Elon Musk promise, so how much weight do you put on it?
Zero.
And I really mean zero, not a negative value. That is, when Elon Musk promises something, it doesn't mean he won't do it, it means that it is just as likely to do it as if he didn't promise anything.
I don't understand why people listen to him when it comes to predictions, he is as close to a random generator as one can get. Even analyzing his actions come with a lot of uncertainty, though not as much as what he says, some things are too big to hide. Being able to maintain such level of uncertainty is probably part of his success, he is like a poker player no one can read.
The market for aircraft engine gas turbines is at least 5x the market for industrial gas turbines. We could eliminate natural gas for electricity overnight and GE would keep spinning. Even if it becomes hard to justify development of land-based gas turbines it will still be possible to repurpose jet engines for this purpose.
(Though I really want to see a fast reactor coupled to a supercritical CO2 or helium brayton cycle turbine!)
If you had asked me whether I see more potential for battery prices to go down than turbine prices I would 100% say that batteries have more potential. Why?
1. Because there is a lot of pressure for them to go down, in literally every form of technology, be it phones, robots, drones, EVs, ... Turbines are also important, but they have had that pressure for decades and are relatively finished. Any further improvement will give diminishing results outside of specialized applications and demands
2. Because the technology for batteries is relatively open ended in comparison. Turbine prices are mainly about how that steel can be precision engineered and while there is some innovation at this front, the gains from that innovation have slowed for a while now. With batteries however the race is still very open and it would not be naive to assume some new chemistry will be found that reduces the cost and energy density drastically.
I don't know the economics around precision engineering well enough to intelligently how high demand impacts the manufacturing cost, but I could imagine it behaving slightly different than the cost of simpler processes, especially since good CNC machines are hefty investments.
China leads the world in battery manufacturing, it's not really so hard in an absolute sense, but gee do you have to get the cost down and get the quality up so you don't have batteries blow up because of manufacturing defects.
To make gas turbines though you need to get the last bit of performance available out of metals, manufacture parts with punishing tolerances, and do it with high quality so turbines don't blow up because of manufacturing defects. At this point in time China cannot make competitive gas turbines. China's COMAC C919 airliner is 100% dependent on western engines for instance.
One enduring insight from Brian Potter (Construction Physics) is that the cost of manufacturing tends to go down with scale, while the cost of construction doesn't drop nearly as much. Batteries are made in a factory and then pretty much just hooked up, while gas turbines have to be built. So, the difference in forecasts makes sense if you apply that rule.
There have been some experiments with prefabricated construction, but you still run into the issue that shipping really big things is hard, as we've seen with wind turbine blades. Robotic construction might make a dent at some point, but it still seems to be basically embryonic.
TLDR: Every where but some parts of the USA, solar + battery is the cheapest source of new power generation. Tariffs and subsidies continue to prop up gas generation. 40% YOY drop in battery prices!? Solar + battery is still on the cost learning curve (no where near plateau), whereas gas (extraction, turbines, etc) plateaued a while back.
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That episode (and Ember's report) looks back at 2025.
So it couldn't account for this year's increased prices and volatility for gas, or data centers increasing the demand for gas turbines.
Globally, solar + battery adoption continues to accelerate. In the USA, big tech forfeited their climate pledges (choosing to use gas) and new solar + battery continues to be blocked by our constipated connection queue (to the grid).
Battery production is being invested in heavily. There are new types of batteries (like sodium ion) that are extremely relevant to the article that it barely even mentions. The pitch for those is of course no lithium, better temperature ranges, less need for cooling/heating them, much better fire safety, better durability, etc. This all adds up to lower cost when done at scale. That all adds up to a lot less cost for especially grid storage.
I agree the 33% number is meaningless. It's probably too conservative. The article actually does not talk about new battery chemistries like sodium ion. And given that large scale factories are already producing those by the tens of gwh, I think that's more than a little oversight. Additionally, there are learning effects that explain the large differences in prices between markets that the article mentions. Those are optimizations that countries have yet to implement. Some might not get around to that any time soon (like the US seems a bit of a basket case on cost/efficiency for a lot of things).
Because of the improvements in battery cost relative to the stagnating improvements in gas turbines, gas turbine manufacturers are going to be conservative in investing in new production capacity. A lot of companies that say right now that they are going to want to buy gas turbines might no longer want to in a few years. For example the low cost and ready availability of solar+battery might be persuasive for some. Investing many billions in new production capacity that won't come online until some time next decade is highly risky if the projected demand could evaporate. The reason there is a shortage is that that's what they thought five to ten years ago as well. So, it's easy to predict that turbine shortages might continue to exist.
Batteries are easy to build (ish) and pretty scalable. New capacity can come online to meet demand.
IIRC there are something like 3 companies on earth that can make gas turbine blades, as it's a particularly difficult process, and they are sold out for the foreseeable future. New capacity is severely constrained and cannot meet demand.
I saw a seemingly credible prediction from an energy analyst that global energy use would fall over the next five years. The rationale being that electrification can use less energy for the same work because heat pumps, EVs, etc are more efficient. Just pumping and refining oil is a huge sink of energy that disappears as more things become electrified.
The popular number is that every 18 months, China was destroying 1 million BPD demand.
NO, the projections are separate from the statement that batteries are NOW cheaper than peakers in most geographies. They'll be even cheaper if those projections pan out.
That seems fairly obvious, but afaik the problem is not bridging four hours, it’s bridging a cloudy week without wind in winter. For that gas currently seems cheaper
A non-carbon containing fuel that is almost entirely created by burning fossil fuels is effectively the same (and often worse) than just using the fossil fuels directly.
Biodiesel or biomethane looks at first glance to escape this, but it has serious other costs.
Is almost entirely fossil-fuel created doesn't mean it has to be almost entirely fossil-fuel created. You know, just like observing that cars are almost entirely burning fossil fuels doesn't mean cars must burn fossil fuels.
FWIW, the latest analysis I've seen seems to suggest that biomethane is probably the way to go for last-resort long term backup. Hydrogen is just too fickle.
What does it mean for a gas to be 'fickle'? Hydrogen gets stored long term all the time. It's made in refineries and used in chemical plants all over the world every day. It's expensive to store, but it's certainly doable with the right metallurgy. If your goal is reducing carbon emission as much as possible, it's way better than methane, regardless of source.
Hydrogen is a storage medium. It's fundamentally different than natural gas. Think of it more like a more complex, expensive, and inefficient battery; with the only advantage being that you can store more energy per unit volume at large scales.
The very small molecule makes it much harder to store than methane, and unlike anything else on the planet other than Helium, lost hydrogen is lost forever.
Methane is basically just hydrogen gas, but with one carbon for every 4 hydrogens. This means you can do stuff like liquefy it at higher temperatures and lower pressures, and it doesn't diffuse out of materials or otherwise destroy the materials (or seals) it's stored by.
>with the only advantage being that you can store more energy per unit volume at large scales.
In a vacuum, maybe; in real life, absolutely not. Hydrogen that is stabilized by a sufficient number of associated carbon atoms can be stored in plastic containers at standard temperature and pressure; naturally, we use the fuel that has just enough carbons that, while nominally a liquid, but would really rather be a vapor.
Because that stabilizer is part of that reaction, the best one from a CO2 perspective is the one that has as little of that stabilizer as possible. Which is what methane is.
Studies have shown that hybrids have fewer issues than ICE or BEV, though for different reasons. BEVs have new technology issues, and ICE has maintenance issues. Having a mostly understood ICE car that rarely uses the ICE and has the most reliable (battery+motor) part of the BEV makes a better solution short term.
The UK relies far too much on gas turbines, rather than renewables and as a consequence we have energy costs far higher than other European neighbours.
Gas is not cheap, it basically doubles your costs.
Well the goal is to only run the backup a few hundred hours a year, the question is which technology can provide close to 100% of demand a few percent of the time in the cheapest way. Turbines or even gas motors are relatively cheap in capex and gas is easy to store in large quantities.
Gas turbines have a manufacturing backlog of at least a half decade. The longer is takes to build them, the more favorable battery storage is (as it can be installed today), and the faster more battery storage manufacturing spins up, this further drives down the cost.
> For its part, China – a battery manufacturing powerhouse – has no such supply chain issues. It dominates global lithium battery production accounting for two-thirds of it. This relative strength gives it the confidence to relentlessly amplify its BESS footprint as evidenced in the capacity build-up between 2021 and 2026.
> In fact, China’s battery storage build-out has no global parallel thanks to this one factor alone, according to Ember. It estimates that nearly all (i.e.149.8 GW) of China’s “new energy storage” consists of lithium-ion batteries.
> In terms of the future, following a June update to its 15th Five-Year Plan, China is now aiming to deploy 300 GW of new energy storage by 2030. That would keep the country’s BESS industry progression, that outgrows all other countries combined, firmly on track.
Renewables require gas in the UK. There is no realistic route to 100% renewable grid without gas currently. I did some modelling of this and you'd require something on the order of 4000GWh of battery storage. We currently have 40GWh.
Gas is far, far cheaper than building ~£1T worth of battery storage. Even if prices dropped, you are still looking at multi-hundred billions, and you still need the renewable capacity on top of that.
Arguably if we had spent the £100bns (in subsidy and transmission upgrade and curtailment costs) we've already spent on renewables on nuclear instead we would have a very clean grid, even at crazy UK nuclear build prices, and stable electricity prices.
Last time I did the maths based on data from gridwatch the storage capacity required dropped dramatically if you over built the on the production side.
But ok, 30 million homes, 100kWh storage each, that's 3000 GWh
A 100kWh battery is about £25k, less than 1/10th the cost of the house, and less than the average new car
The issue is you need to design for 1-2 weeks of little to no wind and very little solar in winter, when demand is it its greatest. This is what is so tricky, unlike more southern climates where you have pretty reliable solar year round (even if its reduced, its not close to 0 which is the case in the UK). Instead of storing a day or so, you need to store weeks of energy.
Also you're forgetting residential electricity is maybe 1/3rd of total demand.
I guess the point is that when combined with a source of dispatchable base load power like a combined cycle gas turbine or nuclear, batteries are now cheaper than open cycle gas peaker plants for bridging short (4 hours or less) spikes in demand.
This is exactly what they are going for. To not have to build and run expensive gas plants just for a few hours in the evening. It also allows you to run the few gas plants that you do build for longer to better amortize their build costs, making them less expensive overall.
The article does the annoying thing of using a technical term without definining it.
An open-cycle gas turbine is the "simple" configuration that draws in air through a pressurization stage, into a combustion chamber for fuel combustion, producing high-pressure hot gases that drive a turbine and generate power, with exhaust gases released into the atmosphere.
In other words, there is no recovery of heat from the exhaust, it's basically an aircraft jet engine core mounted on the ground and connected to a generator. They aren't very efficient but they are compact, relatively cheap, and quick to spin up during peak demand times.
This where system thinking, or the lack there of, becomes an issue. You would be right if we only had exactly enough capacity for four hours of power. But of course with batteries now being produced by the multiple twh per year, each of them capable of cycling on a daily basis for a decade or longer, we soon will have quite a bit of battery connected to the grid. If you have a hundred of those four hour systems connected you'd blow fuses throughout the country if you dumped all that power on the grid all at once. That could be days of power under normal usage.
And grids can actually be connected together via cables now. The cliche is that solar panels don't generate at night. But if you connect grids via a long cable running east to west you can actually have solar power at night. And when you connect them north to south you can have solar power on a dark winter day as well. And when you add batteries to the mix (on both sides), you can keep those charged as well and use that power regardless of what time or season it is.
And that's ignoring wind (on and offshore), hydro, nuclear, and other clean forms of power that we currently don't use at scale (geothermal, fusion, etc.). If you add all that to the mix. And cables. And lots of battery. Grid connected car batteries, balcony solar, and all the rest, you end up with a lot of capacity.
Gas power is not going to way. But we probably already have too much of it and it shows in the poor utilization of existing turbines. Ironically, adding more gas turbines to the grid only makes that poor utilization worse for owners of these plants.
I'm not sure how bleak it even is. I have some solar powered lights. On a fully cloudy day they maybe are down 50-60% their usual run time by my guess. Not great but not some terrible loss that couldn't be accounted for with more solar buildout overall it would seem.
Maybe there's an argument for managed forests for charcoal energy production too. That would technically be carbon neutral.
The biggest issue with batteries is that they are not a prime source.
In a healthy grid with a diverse generation mix, batteries are almost certainly the perfect option for peak demand handling. The problem is that many grids are not healthy or do not have very diverse generation mixes.
You are effectively borrowing from yesterday (or last hour) to pay for today with batteries. Which is amazing, until it isn't. The Texas winter crisis comes to mind as an example where batteries would be regarded with intense derision. I think the current capacity market accreditation process is massively underrepresenting the tail risk of a black swan event. Four hours of battery storage should not be in the same room as a gas turbine when we are talking about capacity and multi-day emergencies.
Four-hour grid-scale batteries wouldn't have helped the Texas winter crisis much. But something like a 10 or 20kwh home battery would have helped a lot (it wouldn't sustain normal energy usage for that long, but the individual home owner could choose to ration the available power for critical functions).
Making demand responsive to supply costs is critical for increased efficiency. Part of that is making appliances smarter and educating users on loading washers/dryers/dishwashers and letting the machine handle energy usage. There are efficiencies in forecasting demand so supply can be negotiated and scheduled, and also being responsive to short term load shedding requirements.
> For onshore wind, continuous capex and opex improvements are expected to drive LCOE down 16% by 2060
What’s with the forecasts going as far out as 2060?? Given the scale of changes we’ve seen in just the last 10 years, looking forward 34 years seems absurd, and to still only expect a 16% drop in cost?
Unlike solar, wind has pretty significant construction and material costs which feel hard to diminish with scale. You still need to excavate earth, install giant pylons, enormous magnets, etc.
That being said, anyone who has predicted the future prices of renewable energy seems destined to look a fool.
Yeah, these forecasts are far too long-term, and progress would have to slow down a lot to see such small improvements over such a long time. These are guesses and I'm not at all sure that they are even educated guesses.
> four-hour storage is forecast to fall a further 33% to $80/MWh by 2035, displacing gas peaking on cost across every gas market in the region.
This seems to be specifically in reference to "gas peakers" which are on-demand gas turbines used to pick up slack in the main grid during peak usage. They typically only run for hours at a go and commonly on very hot days when ACs drain the grid. In those use cases, batteries could be a viable replacement. They're not necessary charged by solar but by the main grid overnight.
I remember arguing with friends literally only 3-4 years ago about whether solar (plus batteries) could ever fully replace fossil fuel solutions. Some of my friends are idiots. ...Or this is just a super-remarkable development :-)
Note that the article is specific to open-cycle gas turbines. Which are somewhat cheaper than the (more complex) combined-cycle gas turbines, and can be brought online far faster - but are far less efficient. So, the open-cycle turbines have been economical only for covering short-duration demand peaks - a use case where batteries are now superior.
Vs. longer-duration needs, like a couple calm (bad for wind power) dark (bad for solar power) weeks in winter - you will need combined-cycle turbines or something for those, because installing that many batteries would cost too much.
150 comments
I’d refer to the source studies, but at $9,990 per region… Ms Pickerel’s overview seems plenty informative for me.
Regarding EMEA:
> Grid-scale battery storage costs are now decisively cheaper than gas peaking across the region. [and price will fall another 33% in the decade ahead]. This shift means storage is displacing open-cycle gas turbines on cost in every gas market across the region, marking a significant structural turning point for power system planning across both the Gulf and Africa.
The analyst’s bottom line:
> From Latin America to Asia Pacific, the combination of falling storage costs and world-class renewable resources is closing off the economic case for new gas peaking capacity, while long-term contracted renewables increasingly set the ceiling rather than the floor on power costs.”
Heady times! For all the gnashing of teeth about regulating our way out of combustion-based production—it’s ultimately superior technology that’s ripened to displace gas peaker plants, no arm-twisting required. “Not with a bang, but a whimper”…
I'm struggling to understand the numbers here. How does a fall of 33% on $37 make it $80?
> Four-hour storage reaches $120/MWh in 2026 and is forecast to fall 33% to $80/MWh by 2035, cementing its role as the enabling technology for solar and wind integration.
Cheap or not, solar isn’t dispatchable on demand, so in and of itself it doesn’t replace the role of a peaker plant. But now that the big batteries are a viable thing, solar-plus-battery is feasible to handle the parts of the demand curve that required open-cycle gas plants before.
4 hours at a time hopefully buys you your way through such a peak, even if it doesn’t get you through weeks at a time… and presumably you can top it up from base load after demand peaks for the day, right?
In the equatorial and desert regions they’re talking about, I think both seasonal supply changes and demand profile might be more consistent than, say, dreary cold parts of Europe..
This is of course not how reality will play out, since the grid is market driven, but it’s quite interesting to see the results.
Denmark 2026:
https://www.sciencedirect.com/science/article/pii/S036054422...
Finland 2025:
https://www.sciencedirect.com/science/article/pii/S036054422...
Australia 2025–26:
https://www.csiro.au/en/research/technology-space/energy/Ele...
But no one is claiming that there will only be 4h-storage
(1) ordinary diurnal variation (overnight, lets say 12 hours)
(2) extremely unfavorable weather (see https://en.wikipedia.org/wiki/Dunkelflaute)
(3) annual variation (you might get 3x the sunlight in summer than winter? do you build 180 days of storage or do you overbuild solar systems 3x and get Casey Handmer to dream up something useful to do with that excess energy that doesn't have a stupendous capital cost?)
The "have a natural gas backup plan" is worse than people think for a lot of reasons, in terms of the laws of political science and economics you're going to find that that tail winds up wagging the dog, the whole market will get designed around the needs of those turbine owners, it's going to cost the same if they are running turbines for 5 minutes a year or 20 days a year, and ultimately you're never going to get rid of it. If you really plan to run the system 5 minutes a year what are the odds it will really work when you need it? You have to not just support the turbines you hardly ever use, pipelines you hardly ever use, drilling and storage operations for gas, etc.
Otherwise you need to deal with long distance power transmission across many political jurisdictions, or local generation for night or other low-solar times. To my mind, nuclear base load with solar and batteries used for things like charging cars or demand-shifting probably makes more sense. It's really a shame that we mostly withdrew from building nuclear plants for the past three or four decades; instead we have reached the point where we have to re-learn how or recreate the tooling needed to build them and they are still too damn expensive.
If nuclear is ever going to be competitive it is going to have to be some kind of reactor that runs at higher temperatures with a gas turbine power set. Could be a fast breeder or HTGR or molten salt but not water cooled. Anyway it is not a bird in the hand.
For that matter, it's shocking how small the actual core is for FBRs. The capital cost of FBRs was long projected to be higher because traditionally you had to add a third cooling loop and some other systems but it is projected an sCO2 system today could be cheaper overall.
what about the variation regarding winds?
Renewables & batteries have high upfront costs but really low operating costs, so that's what you want supplying 90-98% of your power if your goal is lowest cost. (see Ember Energy reports). NatGas has low capital costs but relatively high operating costs, so yes, sitting idle and running a few days a year really is optimal.
$80 = 4h-storage in 2035, forecast
What's the ecological impact of constructing all these batteries?
Gas is 0% recyclable.
What's the runoff from the chemical processing to make the batteries like?
Or does it not matter if you poison great swathes of China?
Recylable is important because it means we don't have to mine as much.
What's the total acreage of lithium extraction ponds in China today?
As distinct, of course, from the artificial lake of sludge known as the Weikuang Dam, four square miles in size, holding rare earth processing sludge waste in Baotou (Inner Mongolia) which is not from lithium processing.
What percentage of China's land area do these tailing ponds amount to, is "great swathes" really a fair estimate?
Do you think that acreage will drop with the current rise in Direct Lithium Extraction (DLE: new technique that skips traditional evaporation ponds, using filters or membranes to pull lithium directly from brine. It's faster, uses less water, and works in areas with lower brine lithium concentrations.) ?
What's your worksheet on waste from fossil fuels V waste from battery production looking like, is it online for others to look at ?
Let's see some actual numbers.
- Worldwide Li-ion battery production per year: 35GWh
- Worldwide grid capacity: 5000GWs
- Lifetime of a specific cell in a grid scale battery: 20-30 years
- Current known reserves of Lithium worldwide at current usage rates: 80 years
So even if we magically mined all known Li reserves this year, it still would only be about 14% of the grid for 1 hour or about 9 minutes total for the entire grid. You don't actually need to backup the entire grid (only about 20-30% of it), but you need to do it for at least 4 hours. Basically, it isn't even close even if we only used Lithium for this use. You can get more with Na-ion, but if you think NPPs are dangerous (they aren't)...let's just say nobody would ever insure a grid scale Na-ion battery. Just one leak and it goes up with 1000s of tonnes of TNT of explosive force.
For example, the world deployed 1600 GWh batteries in 2025.
> Worldwide Li-ion battery production per year: 35GWh
This source: https://www.iea.org/data-and-statistics/charts/lithium-ion-b... tells me China alone manufactured 1200 GWh in 2022. You're at least an order of magnitude off.
> let's just say nobody would ever insure a grid scale Na-ion battery
Well they did.
https://energiesmedia.com/3-1-mwh-grid-battery-energized/
https://www.energy-storage.news/peak-energy-launches-first-g...
Neither of these assumptions are based on anything other than "That's the number we had to put in to the model to get the conclusion we want".
I can't comment on the cost of Gas Turbines.
But the opposite is true for batteries.
> Every time the global cumulative battery production has doubled, the price has dropped by roughly 19%.
There are only a handful of gas turbine manufacturers left, with a manufacturing backlog of half a decade.
It is exceptionally obvious battery manufacturing will only continue to scale (TAM is global EV and stationary storage market), and gas turbine builders will hang on until the economics turn, which they have. Regardless, these trajectories will hold unless something exceptional occurs. Is it likely we’ll build more batteries faster? Yes. Is it likely these are the last three major gas turbine manufacturers to exist? Also yes. Last call for buggy whips.
https://www.enverus.com/blog/the-queue-before-the-queue-gevs...
https://fgermini.substack.com/p/heavy-duty-gas-turbines-the-...
That said, I doubt the cost of either of these technologies is driven so much by the technologies themselves so much as it is our ability to manufacture and install large volumes of them at scale. Presumably it's easier to mass-manufacture batteries in a big factory and then ship them to the site than it is to construct each gas peaker plant on location, and moreover it's probably easier (i.e. cheaper) to scale up the manufacturing process for batteries than it is to scale up the construction process for peaker plants.
Yes, and this is the assumption that the comment I replied to seems to disagree with. I think the assumption is right and the disagreement is wrong.
> That said, I doubt the cost of either of these technologies is driven so much by the technologies themselves so much as it is our ability to manufacture and install large volumes of them at scale.
Deployment is part of the learning curve.
I think you're agreeing with me (and disagreeing with the comment I replied to) here :)
But that's just the short term.
More importantly, I believe that manufacturers are more confident in the long term future of demand for batteries so are willing to continue to invest. People are going to be buying electric cars 10 years from now. The demand for gas turbines in 10 years seems a lot more murky.
SpaceX has promised to start making turbines, which would bring their price down. But it's an Elon Musk promise, so how much weight do you put on it?
Zero.
And I really mean zero, not a negative value. That is, when Elon Musk promises something, it doesn't mean he won't do it, it means that it is just as likely to do it as if he didn't promise anything.
I don't understand why people listen to him when it comes to predictions, he is as close to a random generator as one can get. Even analyzing his actions come with a lot of uncertainty, though not as much as what he says, some things are too big to hide. Being able to maintain such level of uncertainty is probably part of his success, he is like a poker player no one can read.
(Though I really want to see a fast reactor coupled to a supercritical CO2 or helium brayton cycle turbine!)
1. Because there is a lot of pressure for them to go down, in literally every form of technology, be it phones, robots, drones, EVs, ... Turbines are also important, but they have had that pressure for decades and are relatively finished. Any further improvement will give diminishing results outside of specialized applications and demands
2. Because the technology for batteries is relatively open ended in comparison. Turbine prices are mainly about how that steel can be precision engineered and while there is some innovation at this front, the gains from that innovation have slowed for a while now. With batteries however the race is still very open and it would not be naive to assume some new chemistry will be found that reduces the cost and energy density drastically.
I don't know the economics around precision engineering well enough to intelligently how high demand impacts the manufacturing cost, but I could imagine it behaving slightly different than the cost of simpler processes, especially since good CNC machines are hefty investments.
China leads the world in battery manufacturing, it's not really so hard in an absolute sense, but gee do you have to get the cost down and get the quality up so you don't have batteries blow up because of manufacturing defects.
To make gas turbines though you need to get the last bit of performance available out of metals, manufacture parts with punishing tolerances, and do it with high quality so turbines don't blow up because of manufacturing defects. At this point in time China cannot make competitive gas turbines. China's COMAC C919 airliner is 100% dependent on western engines for instance.
There have been some experiments with prefabricated construction, but you still run into the issue that shipping really big things is hard, as we've seen with wind turbine blades. Robotic construction might make a dent at some point, but it still seems to be basically embryonic.
https://www.woodmac.com/reports/power-markets-north-america-...
Here's a prior take on this topic:
The big stories from the last year in electricity [2026-04] https://www.volts.wtf/p/the-big-stories-from-the-last-year
Global Electricity Review 2026 https://ember-energy.org/latest-insights/global-electricity-...
TLDR: Every where but some parts of the USA, solar + battery is the cheapest source of new power generation. Tariffs and subsidies continue to prop up gas generation. 40% YOY drop in battery prices!? Solar + battery is still on the cost learning curve (no where near plateau), whereas gas (extraction, turbines, etc) plateaued a while back.
--
That episode (and Ember's report) looks back at 2025.
So it couldn't account for this year's increased prices and volatility for gas, or data centers increasing the demand for gas turbines.
Globally, solar + battery adoption continues to accelerate. In the USA, big tech forfeited their climate pledges (choosing to use gas) and new solar + battery continues to be blocked by our constipated connection queue (to the grid).
Battery production is being invested in heavily. There are new types of batteries (like sodium ion) that are extremely relevant to the article that it barely even mentions. The pitch for those is of course no lithium, better temperature ranges, less need for cooling/heating them, much better fire safety, better durability, etc. This all adds up to lower cost when done at scale. That all adds up to a lot less cost for especially grid storage.
I agree the 33% number is meaningless. It's probably too conservative. The article actually does not talk about new battery chemistries like sodium ion. And given that large scale factories are already producing those by the tens of gwh, I think that's more than a little oversight. Additionally, there are learning effects that explain the large differences in prices between markets that the article mentions. Those are optimizations that countries have yet to implement. Some might not get around to that any time soon (like the US seems a bit of a basket case on cost/efficiency for a lot of things).
Because of the improvements in battery cost relative to the stagnating improvements in gas turbines, gas turbine manufacturers are going to be conservative in investing in new production capacity. A lot of companies that say right now that they are going to want to buy gas turbines might no longer want to in a few years. For example the low cost and ready availability of solar+battery might be persuasive for some. Investing many billions in new production capacity that won't come online until some time next decade is highly risky if the projected demand could evaporate. The reason there is a shortage is that that's what they thought five to ten years ago as well. So, it's easy to predict that turbine shortages might continue to exist.
IIRC there are something like 3 companies on earth that can make gas turbine blades, as it's a particularly difficult process, and they are sold out for the foreseeable future. New capacity is severely constrained and cannot meet demand.
The demand for energy is the only thing we can be sure will grow.
Is the conduit batteries or gas turbines, who knows.
There’s still a fuckton of oil in the world, imo there’s still giant undiscovered reserves in the Arctic and Canada in general
If you’ve got interesting reads on gas vs green/battery in 2026 post Iran war feel free to post below
The popular number is that every 18 months, China was destroying 1 million BPD demand.
I mean electricity, energy, power, how the hell do we even refer to this correctly? Generated electrical output? lol
Well, other than destroying the planet, but hey, let's just hide those costs.
Biodiesel or biomethane looks at first glance to escape this, but it has serious other costs.
Remember, it is only needed for a few dozen hours a year. It doesn't need to scale.
Storage of hydrogen in underground caverns is demonstrated technology.
Methane is basically just hydrogen gas, but with one carbon for every 4 hydrogens. This means you can do stuff like liquefy it at higher temperatures and lower pressures, and it doesn't diffuse out of materials or otherwise destroy the materials (or seals) it's stored by.
>with the only advantage being that you can store more energy per unit volume at large scales.
In a vacuum, maybe; in real life, absolutely not. Hydrogen that is stabilized by a sufficient number of associated carbon atoms can be stored in plastic containers at standard temperature and pressure; naturally, we use the fuel that has just enough carbons that, while nominally a liquid, but would really rather be a vapor.
Because that stabilizer is part of that reaction, the best one from a CO2 perspective is the one that has as little of that stabilizer as possible. Which is what methane is.
but hybrid cars are saddled with a maintenance heavy complex system that isn't used much.
nowadays we know the solution is just a bigger EV battery.
Looks like 5 year reliability: ICE > non-plugin hybrid > pure EV > plugin hybrid
But EVs seem ok 5+ years
I found this article interesting:
https://autoedgeview.com/ev-reviews/consumer-reports-ev-reli...
If your going to burn the power turning it into hydrogen then you save a shitload of that power by putting it in batteries instead.
Gas is not cheap, it basically doubles your costs.
https://www.enverus.com/blog/the-queue-before-the-queue-gevs...
https://www.energyconnects.com/opinion/thought-leadership/20...
> For its part, China – a battery manufacturing powerhouse – has no such supply chain issues. It dominates global lithium battery production accounting for two-thirds of it. This relative strength gives it the confidence to relentlessly amplify its BESS footprint as evidenced in the capacity build-up between 2021 and 2026.
> In fact, China’s battery storage build-out has no global parallel thanks to this one factor alone, according to Ember. It estimates that nearly all (i.e.149.8 GW) of China’s “new energy storage” consists of lithium-ion batteries.
> In terms of the future, following a June update to its 15th Five-Year Plan, China is now aiming to deploy 300 GW of new energy storage by 2030. That would keep the country’s BESS industry progression, that outgrows all other countries combined, firmly on track.
(battery storage printer goes brrr)
Gas is far, far cheaper than building ~£1T worth of battery storage. Even if prices dropped, you are still looking at multi-hundred billions, and you still need the renewable capacity on top of that.
Arguably if we had spent the £100bns (in subsidy and transmission upgrade and curtailment costs) we've already spent on renewables on nuclear instead we would have a very clean grid, even at crazy UK nuclear build prices, and stable electricity prices.
But ok, 30 million homes, 100kWh storage each, that's 3000 GWh
A 100kWh battery is about £25k, less than 1/10th the cost of the house, and less than the average new car
That doesn't seem unrealistic.
Also you're forgetting residential electricity is maybe 1/3rd of total demand.
Those turbines aren't great for longer periods, they're pointlessly inefficient if you don't need their ability to peak for short periods.
An open-cycle gas turbine is the "simple" configuration that draws in air through a pressurization stage, into a combustion chamber for fuel combustion, producing high-pressure hot gases that drive a turbine and generate power, with exhaust gases released into the atmosphere.
In other words, there is no recovery of heat from the exhaust, it's basically an aircraft jet engine core mounted on the ground and connected to a generator. They aren't very efficient but they are compact, relatively cheap, and quick to spin up during peak demand times.
Maybe, right now (even as battery prices keep falling), if you can wait 10 years for your plant.
They’re also a lot more expensive to operate.
And grids can actually be connected together via cables now. The cliche is that solar panels don't generate at night. But if you connect grids via a long cable running east to west you can actually have solar power at night. And when you connect them north to south you can have solar power on a dark winter day as well. And when you add batteries to the mix (on both sides), you can keep those charged as well and use that power regardless of what time or season it is.
And that's ignoring wind (on and offshore), hydro, nuclear, and other clean forms of power that we currently don't use at scale (geothermal, fusion, etc.). If you add all that to the mix. And cables. And lots of battery. Grid connected car batteries, balcony solar, and all the rest, you end up with a lot of capacity.
Gas power is not going to way. But we probably already have too much of it and it shows in the poor utilization of existing turbines. Ironically, adding more gas turbines to the grid only makes that poor utilization worse for owners of these plants.
Maybe there's an argument for managed forests for charcoal energy production too. That would technically be carbon neutral.
In a healthy grid with a diverse generation mix, batteries are almost certainly the perfect option for peak demand handling. The problem is that many grids are not healthy or do not have very diverse generation mixes.
You are effectively borrowing from yesterday (or last hour) to pay for today with batteries. Which is amazing, until it isn't. The Texas winter crisis comes to mind as an example where batteries would be regarded with intense derision. I think the current capacity market accreditation process is massively underrepresenting the tail risk of a black swan event. Four hours of battery storage should not be in the same room as a gas turbine when we are talking about capacity and multi-day emergencies.
What’s with the forecasts going as far out as 2060?? Given the scale of changes we’ve seen in just the last 10 years, looking forward 34 years seems absurd, and to still only expect a 16% drop in cost?
That being said, anyone who has predicted the future prices of renewable energy seems destined to look a fool.
This seems to be specifically in reference to "gas peakers" which are on-demand gas turbines used to pick up slack in the main grid during peak usage. They typically only run for hours at a go and commonly on very hot days when ACs drain the grid. In those use cases, batteries could be a viable replacement. They're not necessary charged by solar but by the main grid overnight.
Vs. longer-duration needs, like a couple calm (bad for wind power) dark (bad for solar power) weeks in winter - you will need combined-cycle turbines or something for those, because installing that many batteries would cost too much.
https://en.wikipedia.org/wiki/Gas-fired_power_plant#Plant_ty...