Challenges and applications of hosting capacity analysis in DER-rich power systems

Increasing trends of distributed energy resources (DERs) in power system networks have led to discussions on hosting capabilities. This paper presents a structured review of academic and industrial studies from the past decade, identifying key methodological challenges and applications of hosting capacity analysis covering both transmission and distribution networks. Unlike earlier reviews that focus mainly on distribution networks, this paper addresses hosting capacity analysis for both transmission- and distribution-levels, emphasizing forecasting, steady-state and transient constraints, and application-oriented perspectives for diverse DERs. This review identifies three principal research directions: (a) role of forecasting, scenario selection, performance factors, and control strategies in hosting capacity limits, (b) consideration of steady-state and transient constraints in violation checking, and (c) translation of hosting capacity insights into practical applications for grid planning, operational scheduling, resilience enhancement, operational coordination, and market participation. By synthesizing recent academic and industrial trends, this paper offers actionable insights and strategic recommendations to empower transmission and distribution system operators and drive future applications of hosting capacity analysis in DER-centric grid infrastructures. • Reviews hosting capacity methods and challenges in DER-rich power systems. • Covers both transmission and distribution level hosting capacity analysis. • Highlights forecasting and transient constraints in hosting capacity estimation. • Discusses applications for planning, operation, resilience, and policy design. • Provides insights for hosting capacity-based TSO-DSO coordination.