Giant Batteries Challenge Economics of Gas Power Plants

As large-scale batteries become more economical, they are leading to a decline in new gas power plant projects and could potentially reshape the energy market.

• Giant batteries are becoming increasingly economical, leading to a decline in new gas power plant projects worldwide.
• In the first half of 2023, 68 gas power plant projects were put on hold or cancelled globally.
• Large-scale battery operators are winning more contracts to supply extra power to grids during peak hours, making the construction of new natural gas facilities less viable.
• Electric vehicles could potentially reduce the need for standby gas generation by using the charge stored in their batteries to power homes during peak demand.
• The shift in energy sources challenges long-term assumptions about gas demand and could mean natural gas plays a smaller role in the energy transition than previously thought.

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