The number of battery energy storage systems (BESSs) installed in the United Kingdom and worldwide is growing rapidly due to a variety of factors, including technological improvements, reduced costs and the ability to provide various ancillary services. The aim of this paper is to carry out a comprehensive literature review on this technology, its applications in power systems and to identify potential future developments. At first, the main BESSs projects in the UK are presented and classified. The parameters provided for each project include rated power, battery technology and ancillary services provided, if any. In the next section, the most commonly deployed ancillary services are classified and described. At the same time, the nomenclature found in the literature is explained and harmonised. The second part of the paper focuses on future developments and research gaps: ancillary services that currently are not common but that are likely to be deployed more widely in the future will be described, and more general research topics related to the development of BESSs for power system applications will be outlined.