Batteries 'cheaper' than gas plants as data centres fuel turbine costs

www.abc.net.au · 2026-07-14 · by Long Nguyen ·generic
Falling battery costs and a data centre-fuelled dash for gas have overturned decades of accepted wisdom: gas is no longer the cheapest way to meet peak power demand.

Batteries 'cheaper' than gas plants as data centres fuel turbine costs

Batteries 'cheaper' than gas plants as data centres fuel turbine costs

By energy reporter Daniel Mercer and climate editor Tim Leslie

Wed 15 Jul 2026 at 4:40amWed 15 Jul 2026 at 4:40am

Wed 15 Jul 2026 at 4:40am

Flames belch form two tall metal industrial chimneys.

Gas has long been the traditional peaking fuel in Australia, but times are changing. (ABC News: Chris Lewis)

In short:

Australia's top science agency has found batteries are now cheaper at supplying peak demand for power than gas.

The CSIRO's annual GenCost report notes insatiable demand for gas-fired power from US data centres is driving up turbine costs.

At the same time, the agency says battery costs are falling, thanks largely to increasing Chinese production.

www.abc.net.au · 14 images · 129 links

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