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Power transmission and distribution systems are facing an increased amount of renewable generation where the power generated varies depending on the available wind, waves or solar radiation. This creates new challenges for the stable and reliable operation of the power system, requiring, in many instances, network reinforcement to maintain network reliability. Energy storage will increasingly play an important role in economically managing power networks to meet demand and maintain supply reliability during these generation and demand fluctuations. In this paper, we will examine a combination of two of the most important factors in the operation of a reliable power system: reactive power, used for voltage and stability control, combined with energy storage in order to balance the active power production, e.g. from intermittent renewable generation sources.