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Abstract The electrification of the transport sector to control the carbon footprint has been gaining momentum over the last decade with electric vehicles (EVs) seen as the replacement for conventional internal combustion engines. Economic incentives, subsidies, and tax exemptions are also paving the way for rising EV penetration in the power distribution networks. However, the exponential EV adoption requires careful technical and regulatory analysis of traditional networks to satisfy the network reliability constraints. Therefore, it would be vital to find EV hosting capacity (HC) limits of networks from a multifaceted approach involving various market players, mainly distribution system operators and EV owners. This review provides a systematic categorization of EV hosting capacity evaluation and improvement methods, thus enabling researchers and industry personnel to navigate the advancing landscape of EVs. This novel framework extends beyond the theoretical implication of diverse objective functions and HC improvement methods to the actual numerical values of EV HC across varying geographical settings. Therefore, this unique synthesis of varying aspects of EV HC facilitates the in‐depth understanding of the integration of sustainable energy and transport sector.

Abstract The upcoming network investment decisions and regulatory framework adopted by distribution system operators (DSOs) are most likely to be impacted by the integration of fluctuating distributed generation. The economical hosting capacity (HC) improvement method is investigated in this paper as a trade‐off between curtailment and upgrade using a Monte Carlo simulation procedure. The associated costs of both methods are vital indicators for network operators that are trying to maximize the HC and minimize cost. In addition, the breakeven point where curtailment and upgrade costs intersect is the decisive point at which network upgrade becomes sensible as marginal curtailment cost exceeds upgrade cost. A shift in global climate conditions can impact the photovoltaic (PV) levels that motivate network operators to investigate PV penetration, especially in colder climate regions. Thus, the primary objective of this paper is to investigate the shift of the breakeven point to guide DSOs to either adopt PV curtailment as a temporary measure or grid upgrade as a risk aversion strategy considering Finnish climate and load patterns. The real‐time load and PV generation data are utilized for the simulations to consider the dynamic performance indication of three Finnish distribution networks. Curtailment remains a low‐cost option to obtain a percentage HC rise of 13%, 7%, and 8% for rural, suburban, and urban regions, respectively, beyond which curtailment compensation cost surpasses upgrade cost. In essence, PV curtailment serves as an immediate and least‐cost solution to relieve network violations and defer network investment until the HC level (118%, 106%, 97%) making the upgrade a practical option afterwards.