The present article proposes an optimal battery system management model in distribution grids for stationary applications. The main purpose of the management model is to maximise the utilisation of distributed renewable energy resources in distribution grids, preventing situations of reverse power flow in the distribution transformer. Secondly, battery management ensures efficient battery utilisation: charging at off-peak prices and discharging at peak prices when possible. This gives the battery system a shorter payback time. Management of the system requires predictions of residual distribution grid demand (i.e. demand minus renewable energy generation) and electricity price curves (e.g. for 24 h in advance). Results of a hypothetical study in Great Britain in 2020 show that the battery can contribute significantly to storing renewable energy surplus in distribution grids while being highly utilised. In a distribution grid with 25 households and an installed 8.9 kW wind turbine, a battery system with rated power of 8.9 kW and battery capacity of 100 kWh can store 7 MWh of 8 MWh wind energy surplus annually. Annual battery utilisation reaches 235 cycles in per unit values, where one unit is a full charge-depleting cycle depth of a new battery (80% of 100 kWh). (C) 2013 Elsevier B.V. All rights reserved.