The use of energy storage systems (ESSs) in smart distribution networks has grown significantly to increase the efficiency and effectiveness of smart grids. One of the critical applications of ESS technologies is to improve various power quality and reliability indices. Since the power quality issues have different specifications; such as the voltage variations amplitude, frequency, and duration, so compensating and improving these indices needs special technical requirements. From the viewpoint of system reliability, the system performance can be modeled using some technical indices which describe the duration and number of interruptions. On the other hand, ESSs have different characteristics in terms of power and energy density, response time, and techno-economic features. As a result, each ESS technology may be suitable for specific power quality and reliability-related applications. Therefore the utilization of advanced technologies such as hybrid and combined ESSs and emerging storage ideas can enhance the associated techno-economic indices.