Considerations for benefit stacking policies in the EU electricity storage market

Electricity Storage is a key activity in the European Union’s (EU) decarbonisation strategy. Indeed, storage facilitates the penetration of electricity from renewable sources into the grid by reducing the variability of renewable generation. Despite its importance, electricity storage is still perceived as a risky activity. The risk derives from the widespread need to secure multiple revenue streams in order to ensure profitability. This article investigates the risks influencing the development of electricity storage in the EU regulatory framework, focusing on benefit stacking. Benefit stacking refers to the diversification of services a storage asset can provide. This article evaluates some of the main regulatory barriers to benefit stacking in the EU electricity market and provides policy strategies to derisk this activity. The study is carried out using a multilevel analysis: the obstacles to stacking electricity storage services are investigated in EU law as well as in national law. After analysing the obstacles, policy recommendations are proposed to foster benefit stacking at both levels. •Benefit Stacking is part of the strategy to increase electricity storage deployment.•Benefit stacking policies face obstacles at the EU and the national levels.•Despite advancements, benefit stacking is not properly regulated.•Derisking benefit stacking entails policies within and between levels.