Submission 138
Economic Assessment of Battery Hosting Capacity with Grid-Aware Optimization
WISO25-138
Presented by: Markus Miller
Battery energy storage system (BESS) investors typically seek grid connections at locations determined by non-grid factors
such as land availability, creating potential mismatches with optimal grid integration points. Compounding this challenge, tra-
ditional hosting capacity assessments rely on conservative worst-case scenarios that significantly underestimate viable BESS
capacities and reduce investment attractiveness. This paper presents a Multi-Period Quadratic Constraint Optimal Power Flow
framework for one-year hourly operations that evaluates cooperative investment models where investors grant operational control
to distribution system operators, enabling mutual benefits through larger installations and optimized grid operation. The convex
optimization leads to fast solving with approximately 160 seconds. The methodology integrates state-of-charge temporal depen-
dencies, degradation costs, and penalty terms to model comprehensive BESS operation while enforcing voltage, thermal line,
and power balance constraints. Applied to the CIGRE MV benchmark network with 2024 market data, the framework system-
atically compares standalone arbitrage operation against grid-integrated scenarios through Net Present Value analysis. Results
identify an optimal BESS capacity of 30 MWh at a single connection point, with network bottlenecks limiting further capacity
expansion. Although line congestion hours increase substantially as capacity grows, the configuration remains economically at-
tractive, demonstrating that cooperative operational frameworks unlock significant value for both investors and grid operators
while maintaining system reliability.