In this work, a prediction of the effects of introducing energy storage systems on the network stability of the distribution network of Cyprus and a comparison in terms of cost with a traditional solution is carried out. In particular, for solving possible overvoltage problems, several scenarios of storage units' installation are used and compared with the alternative solution of extra cable connection between the node with the lowest voltage and the node with the highest voltage of the distribution network. For the comparison, a case study of a typical LV distribution feeder in the power system of Cyprus is used. The results indicated that the performance indicator of each solution depends on the type, the size and the position of installation of the storage unit. Also, as more storage units are installed the better the performance indicator and the more attractive is the investment in storage units to solve power quality problems in the distribution network. In the case where the technical requirements in voltage limitations according to distribution regulations are satisfied with one storage unit, the installation of an additional storage unit will only increase the final cost. The best solution, however, still remains the alternative solution of extra cable connection between the node with the lowest voltage and the node with the highest voltage of the distribution network, due to the lower investment costs compared to that of the storage units.