The invention relates to a dynamically-reconfigurable battery energy storage system and method. The system comprises an energy storage system main circuit and a battery management system. The energy storage system main circuit has a charging and discharging interface circuit and an energy storage battery pack connected with the charging and discharging interface circuit. The energy storage battery pack is formed by connecting a plurality of single batteries in parallel. Each single battery is provided with a controllable switch Sn(n=1, 2,..., n) at the two ends thereof. In the energy storage battery pack formed by connecting the plurality of single batteries in parallel, the positive electrode end of each single battery is connected with the positive electrode end of an adjacent single battery through a controllable switch S'n (n = 1, 2,..., n), and the negative electrode end of each single battery is connected with the negative electrode end of the adjacent single battery through a controllable switch S "n (n = 1, 2,..., n). The battery management system is connected with the energy storage system main circuit, and is used for generating an energy storage battery pack reconfiguration decision according to electrical information of the single batteries and a power switching instruction, and controlling connection or disconnection of the controllable switch Sn, the controllable switch S'n and the controllable switch S"n to change topology of the energy storage battery pack.