With the high penetration of renewable energy into power grids, frequency stability and oscillation have become big concerns due to the reduced system inertia. The application of the Battery Energy Storage System (BESS) is considered one of the options to deal with frequency stability and oscillation. This paper presents a strategy to size, locate, and operate the BESS within the power grid and, therefore, investigate how sizing capacity is related to renewable energy penetration levels. This paper proposes an identification method to determine the best location of the BESS using the Prony method based on system oscillation analysis, which is easy to implement based on measurements while actual physical system models are not required. The proposed methods for BESS size and location are applied using MATLAB/Simulink simulation software (version: R2023a) on the Kundur 2-area 11-bus test system with different renewable energy penetration levels, and the effectiveness of the applied method in enhancing frequency stability is illustrated in the study cases. The case studies showed a significant improvement in steady-state frequency deviation, frequency nadir, and Rate of Change of Frequency (ROCOF) after implementing BESS at the selected bus. The integration of BESS can help to avoid Under-frequency Load Shedding (UFLS) by proper selections of size, location, and operating strategy of the BESS within the power grid. [ABSTRACT FROM AUTHOR]