The Grid Just Got Cheaper: Battery Power Beats Gas for the First Time Ever
For the first time in history, storing energy in large batteries is now cheaper than burning gas to generate electricity, a milestone that could accelerate the global shift away from fossil fuels. Battery storage has undercut gas plants on cost for short-term "peak" power needs, while solar energy in the United States has also overtaken coal for the first time, signaling a rapid transformation of the world's energy systems.
The cost of storing energy in large batteries has fallen below the cost of generating power from gas-fired plants for the first time [174138]. Battery systems, which store electricity from solar and wind, release it when demand is high—a role traditionally filled by gas plants. Falling battery prices, driven by cheaper materials and better manufacturing, have made clean energy not just better for the environment but also cheaper for consumers [174138]. While gas still provides steady, around-the-clock power, experts say batteries are now the cheaper option for short-term energy needs and the trend will continue as technology improves [174138].
At the same time, Americans are now getting more electricity from solar power than from coal for the first time [176040]. Solar provides more than twice the share of electricity it did just five years ago, marking a major shift in the nation’s energy mix as coal continues its steady decline [176040].
This electrification push is now central to global climate policy. At recent preparatory talks in Bonn, Germany, for the upcoming United Nations Cop31 climate summit, electrification became a main focus, replacing what was once a "nerdish backwater" topic [178239]. The goal is to replace the 80% of global energy that still comes from fossil fuels through electric vehicles, electric heating and cooling, and modernized heavy industry [178239]. One estimate suggests global energy demand could be cut in half because electric power is far more efficient than burning fuel [178239].
In Europe, small, cheap electric cars are finally squeezing into narrow streets as improved battery technology and lower costs allow carmakers to produce compact EVs that can navigate medieval lanes [178208]. For years, big batteries made small cars impractical, so makers focused on oversized SUVs, but now smaller vehicles are becoming more stylish and practical [178208].
Meanwhile, General Motors has partnered with startup Peak Energy to manufacture sodium-ion batteries for energy storage systems [176017]. Sodium-ion batteries are cheaper and safer than lithium-ion ones and do not rely on scarce materials, marking a major step away from lithium dependence [176017].