# U.S. Battery Storage Undercuts Gas Peakers

Wood Mackenzie reports that four-hour battery storage entering commercial operation in the United States in 2026 can cost 65%–75% less than new gas peaker plants and is cheaper than open-cycle gas turbines in all 43 modeled markets. For utilities and government buyers planning capacity, this strengthens the case for evaluating storage and solar-plus-storage in upcoming plans and solicitations, while recognizing that gas may still provide value for extended-duration backup.

- Procurement teams can compare battery storage and solar-plus-storage against new gas peaker capacity using regional cost assumptions; the reported savings are not a substitute for project-specific analysis.
- Contractors supplying storage, solar integration, and related services may find a stronger competitive case in capacity procurements where four-hour storage can meet the stated need.
- Buyers should account for the duration of required backup: the report’s cost comparison concerns four-hour storage, and gas retains potential value for longer-duration needs.

**Jurisdictions:** federal
**Industries:** Energy & Utilities
**Published:** October 28, 2026

### Vendors
- GE Vernova (Gas turbine manufacturer)
- Siemens Energy (Gas turbine manufacturer)
- Mitsubishi (Gas turbine manufacturer)

### Key Quotes
> this economic shift is decisive and widening.
> — Ahmed Jameel Abdullah, Principal Analyst at Wood Mackenzie

### Sources
- [Four-hour battery storage now undercuts gas peakers nationwide](https://gcn.com/four-hour-battery-storage-now-undercuts/22826) - gcn.com