The power demand around the world is increasing rapidly. The aging distribution network architectures are used by the existing utility companies to deliver power to the consumers, which significantly affects the reliability, stability and quality of the delivered power. Different techniques such as compensation devices have been used by power system engineers and researchers to maintain the quality of power transmitted to end users. In this paper, wattage and volt-amp reactive (VAR) planning scheme has been proposed by using the combination of battery energy storage systems (BESS) and compensators to deal with the vulnerability of networks to voltage drop and system inefficiency. The cost-effective combination of BESS and shunt capacitor bank will then be analyzed to indicate the benefit of the proposed scheme.