Integration of Battery Energy Storage System into Distribution Networks: An Approach based on State-of-Health Estimation

Battery energy storage systems (BESS) are essential for optimizing energy management in distribution networks. This paper presents a comprehensive framework and detailed mathematical model for integrating BESS into the distribution network to reduce the operating costs of a local distribution company (LDC). It proposes a state-of-health (SoH) estimation based on calendar aging for lithium-ion (Li-ion) batteries to be incorporated into the LDC planning strategy. This estimate accurately predicts the SoH of BESS over time and ensures more effective long-term planning and cost management. The results show that the proposed model provides accurate and reliable SoH estimates, which contributes to improving the efficiency and sustainability of on-grid energy storage systems.