Asian nations pursue oil reserves and clean energy amid Iran war
The Philippines plans a national oil reserve by the end of 2027, while ASEAN countries have advanced a preliminary agreement on a regional electricity grid.
Battery storage undercuts gas turbines across 43 markets, Wood Mackenzie says
The consultancy found four-hour batteries cheaper than open-cycle gas turbines, while solar ranked as the least expensive source of new power.
Four-hour battery storage costs less than open-cycle gas turbines in all 43 markets examined by Wood Mackenzie, according to a new report from the consultancy. The findings cover every continent and compare batteries with a type of gas plant favored by many data center developers.
Purchases by developers of AI data centers have pushed turbine prices higher, with open-cycle equipment particularly affected. These turbines are more readily available than closed-cycle models but are less efficient and cost more to operate. Utilities also use them to supply electricity when demand peaks, leaving them exposed to higher equipment costs.
Procurement now takes two to four years for open-cycle turbines, while waiting lists for closed-cycle equipment stretch into the early 2030s. Backlogs for both types have increased prices for new gas-fired plants. Wood Mackenzie expects battery-generated electricity to become cheaper over the coming decades while gas turbine power becomes more expensive.
Solar was the lowest-cost option for new power across the markets surveyed, the consultancy said. That includes North America, although tariffs and import restrictions are putting pressure on solar prices there. Wood Mackenzie expects utility-scale projects to be less affected.