Demand response program (DRP) and energy storage systems (ESSs) are two main tools for load management
in smart grids. They can make distribution networks more reliable without costly upgrades for substation
construction or lines reinforcement. This work proposes an optimization framework of sitting and sizing of ESSs
in a smart distribution network in the presence of DRP and considering renewable energy sources (RESs) effects
and network constraints. The proposed objective function includes two terms: 1) minimizing the total investment
costs of ESSs; 2) minimizing the cost of active losses and the power purchased from the upstream grid and diesel
generators. DRP can reduce operation costs by shifting some loads from hours with high demand to hours with
lower demand and so can reduce network losses and help in peak load shaving process. In order to solve the
proposed optimization problem, a mixed-integer non-linear programming (MINLP) model is constructed and
solved using DICOPT solver by GAMS optimization software. A modified 33-bus distribution network is
considered, and the results of three different cases are compared. Finally, it can be noted that total cost of the
network in case 2, with optimal ESSs allocation, is reduced by 4.9% compared with the base case, while this
reduction is about 20% in case 3 with considering DRP beside ESSs allocation.