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Energy storage can potentially allow for more production from renewable resources into existing grids. A methodology to quantify grid limitations and dimension battery energy storage systems is presented in this paper. By use of grid consumption and production data, the hosting capacity methodology is developed as a general framework for storage dimensioning that can be applied by grid operators. The method is successfully applied to an existing subtransmission grid; actual hourly production and consumption data during a two-year period is used. The role of a storage system compared to other means to handle overloading is studied. It is found that about one third of overloading instances are suitable to handle with a battery energy storage system. After this, diminishing returns per unit of storage capacity are shown to occur.