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Summary This article presents the problem of optimizing position and operating power of battery energy storage system (BESS) in the distribution system for the 24‐hour period. Wherein, the surveyed period is divided into small periods of peak, standard, and off‐peak hours. The goal is to find the optimal node for installation of BESS and its power in each interval to reduce the electricity purchasing cost and the cost of energy loss. The cuckoo search algorithm (CSA) is mapped to find the optimal parameters of BESS, and its efficiency is compared with that of genetic algorithm, sunflower optimization, and pathfinder algorithm. The efficiency of the proposed problem has been evaluated on two test systems. The obtained results show that the proposed problem and method have ability to reduce energy cost as well as contribute to reduce peak loads during peak hours in the 24‐hour period. The results also show that CSA is an effective tool for the problem of optimization position and power of BESS.

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