AbstractControl of battery energy storage systems (BESS) for active network management (ANM) should be done in coordinated way considering management of different BESS components like battery cells and inverter interface concurrently. In this paper, a detailed and accurate lithium‐ion battery model has been used to design BESS controls, thereby allowing improved overall power system control design optimisation studies by simultaneously considering both component and system‐level aspects. This model is utilised to develop a multi‐objective ANM scheme (a) to enhance utilisation of wind power generation locally by means of active power (P)‐ control of BESSs; (b) to utilise distributed energy resources (i.e. BESS and wind turbine generators) to maintain system voltage within the limits of grid code requirements by reactive power/voltage (QU)‐ and active power/voltage (PU)‐ controls. BESS control strategies to implement the ANM scheme, are designed and validated through real‐time simulation in an existing smart grid pilot, Sundom Smart Grid (SSG), in Vaasa, Finland.