AbstractLithium-ion battery energy storage systems (Li-ion BESS), due to their capability in providing both active and reactive power services, act as a bridging technology for efficient implementation of active network management (ANM) schemes for land-based grid applications. Due to higher integration of intermittent renewable energy sources in the distribution system, transient instability may induce power quality issues, mainly in terms of voltage fluctuations. In such situations, ANM schemes in the power network are a possible solution to maintain operation limits defined by grid codes. However, to implement ANM schemes effectively, integration and control of highly flexible Li-ion BESS play an important role, considering their performance characteristics and economics. Hence, in this paper, an energy management system (EMS) has been developed for implementing the ANM scheme, particularly focusing on the integration design of Li-ion BESS and the controllers managing them. Developed ANM scheme has been utilized to mitigate MV network issues (i.e. voltage stability and adherence to reactive power window). The efficiency of Li-ion BESS integration methodology, performance of the EMS controllers to implement ANM scheme and the effect of such ANM schemes on integration of Li-ion BESS, i.e. control of its grid-side converter (considering operation states and characteristics of the Li-ion BESS) and their coordination with the grid side controllers have been validated by means of simulation studies in the Sundom smart grid network, Vaasa, Finland.