In this section
ICEPT staff and PhD students publish widely in a range of academic journals, policy reports and technical papers.
@article{Landy:2026:10.1039/d6ee00776g,
author = {Landy, M and Schmidt, O and Johnson, N and Staffell, I},
doi = {10.1039/d6ee00776g},
journal = {Energy and Environmental Science},
pages = {4469--4494},
title = {Maximising the economic value of renewable and battery storage hybrids with revenue stacking},
url = {http://dx.doi.org/10.1039/d6ee00776g},
volume = {19},
year = {2026}
}
TY - JOUR
AB - As power systems add more wind and solar, electricity supply becomes less controllable and market prices become more volatile. A growing challenge is that renewable generators increasingly earn below-average market prices because their production is highly correlated, an effect known as “revenue cannibalisation” or declining “capture rates”. Co-locating battery storage with renewables is widely proposed to shift output to higher-value hours, reduce curtailment, and share grid-connection infrastructure, but the most profitable configurations remain unclear across markets and regulatory designs. This study asks when renewable-storage hybrid projects are economically superior to stand-alone renewables or storage, and which designs and operating strategies best protect revenues. We develop a revenue-stacking optimisation model with explicit efficiency losses and battery degradation to show that profitability depends more on market access and operating constraints than on location alone. Considering a UK case study, we find storage only becomes strongly profitable when it can both charge from the grid and stack revenues across markets. Four-hour discharge duration was most cost-effective, and stand-alone storage tends to be more profitable than co-located or hybridised systems. Extending the analysis across several world regions shows wide geographic variation. Stand-alone storage is favourable in Australian, Nordic and most US markets, while renewable-storage hybrids are superior in Europe, Texas, and parts of Japan. These results provide a practical map from market design and regulation to profitable hybrid architectures, helping investors and policymakers target storage where it most effectively stabilises renewable revenues and supports reliable decarbonisation.
AU - Landy,M
AU - Schmidt,O
AU - Johnson,N
AU - Staffell,I
DO - 10.1039/d6ee00776g
EP - 4494
PY - 2026///
SN - 1754-5692
SP - 4469
TI - Maximising the economic value of renewable and battery storage hybrids with revenue stacking
T2 - Energy and Environmental Science
UR - http://dx.doi.org/10.1039/d6ee00776g
VL - 19
ER -