*Review* **Optimal Planning of Battery Energy Storage Systems by Considering Battery Degradation due to Ambient Temperature: A Review, Challenges, and New Perspective**

**Chico Hermanu Brillianto Apribowo 1,2, Sarjiya Sarjiya 1,3,\*, Sasongko Pramono Hadi <sup>1</sup> and Fransisco Danang Wijaya <sup>1</sup>**


**Abstract:** In recent years, the goal of lowering emissions to minimize the harmful impacts of climate change has emerged as a consensus objective among members of the international community through the increase in renewable energy sources (RES), as a step toward net-zero emissions. The drawbacks of these energy sources are unpredictability and dependence on nature, leading to unstable load power supply risk. One way to overcome instability in the power supply is by using a battery energy storage system (BESS). Therefore, this study provides a detailed and critical review of sizing and siting optimization of BESS, their application challenges, and a new perspective on the consequence of degradation from the ambient temperature. It also reviews advanced battery optimization planning that considers battery degradation, technologies, degradation, objective function, and design constraints. Furthermore, it examines the challenges encountered in developing the BESS optimization model and evaluates the scope of the proposed future direction to improve the optimized BESS, especially its battery.

**Keywords:** battery energy storage system; sizing; optimal planning; battery degradation; ambient temperature; renewable energy sources
