A review of battery energy storage system for renewable energy penetration in electrical power system: Environmental impact, sizing methods, market features, and policy frameworks

This review establishes a comprehensive development framework for Battery Energy Storage Systems (BESS) integration into electrical power systems to enhance renewable energy penetration across four critical dimensions: environmental impact via Life Cycle Assessment (LCA), BESS optimal sizing methodologies, market features, and policy frameworks.

Key findings reveal that Lithium Iron Phosphate (LFP) batteries exhibit superior environmental performance across multiple impact categories, with manufacturing contributing 60–80 % of global warming potential for Li-ion chemistries. Multi-objective optimization either using numerical (e.g., MILP, SOCP) or AI-based (e.g., GA, PSO) methods dominate sizing research, yet fewer than 15 % of studies integrate environmental objectives. Effective deployment hinges on financial incentives (e.g., investment tax credits, performance-based rewards), streamlined regulations enabling market participation, and R&D focused on sustainable materials and recycling. Critical gaps persist, including the need for standardized LCI databases for stationary applications, sizing frameworks combining techno-economic and environmental objectives validated on real distribution networks, and policies dynamically linking incentives to lifecycle sustainability. This work bridges previously disconnected research streams to guide sustainable BESS grid integration.