The optimal operation strategy of active distribution networks is investigated by this paper. The energy
storage system (ESS) and distributed generation (DG) are utilized in the proposed planning. The paper
presents two-level planning including short term and long term planning. The long term planning installs
ESSs and diesel DGs on the network and the short term one determines an hourly optimal operation
strategy for ESSs and diesel DGs. Different types of DG including solar photovoltaic (PV), wind, and
diesel are studied at the same time. The objective function of the planning is to minimize annual
operation cost of distribution network subject to security constraints of the network. The uncertainty of
solar-wind units is estimated by many scenarios and stochastic programming is carried out to solve the
problem. The proposed problem is expressed as a nonlinear mixed integer programming and solved by
modified PSO algorithm. In order to cope with the real conditions, reactive power of ESSs and diesel DGs
are included in the problem. Depth of discharge is also considered as a design variable and optimized for
ESSs. The planning optimizes a large number of design variables at the same time including size and
location of ESSs and diesel DGs, daily operation of diesel DGs, daily charging-discharging pattern of ESSs,
and optimal depth of discharge for ESSs. The results demonstrate that the proposed two-level planning
can effectively reduce cost and losses as well as increase efficiency and performance of the network.