Future electrical grids, particularly the distribution networks, may face more severe voltage rises/drops, and in general, more power quality problems in the presence of new loads such as electric vehicle chargers and renewable energy generation units like photovoltaic systems. This necessitates investing in additional high-cost infrastructure to increase the capability of the feeder in hosting higher levels of loads and generation units while the existing capacity is not utilized effectively. In the stated condition, effective voltage stabilization strategies in electrical distribution networks can contribute to hosting capacity improvement and the better utilization of the existing infrastructure. Accordingly, in this paper, the application of Open-UPQC in voltage profile improvement and hosting capacity enhancement is evaluated in low-voltage distribution networks. Furthermore, a dynamic reference voltage adjustment strategy is applied to the device to improve its capabilities in power quality improvement and hosting capacity enhancement. Simulation studies have been implemented to evaluate the capability of Open-UPQC either with static reference voltage or the dynamically-adjusted one in low-voltage networks with real measured data while different cases are assessed regarding the topology and the length of the feeder. The simulation results approved the capability of Open-UPQC especially with the dynamic reference voltage in hosting capacity enhancement while providing the highest level of voltage profile improvement among all the assessed custom power devices in the studied low-voltage networks.