Abstract: With the high penetration rate of distributed photovoltaic access and the promotion of re-electrification and electrical energy substitution, the volatility of the system source and load is intensified, and the traditional distribution network planning methods are difficult to adapt to the requirements of the new power system development. To address this problem, an optimal allocation model for hybrid energy storage in low-voltage distribution networks considering incentive-based demand response is firstly established. Then, based on the characteristics of energy storage devices and incentive-based demand-side response resources at different time scales, it is proposed to use the improved VMD algorithm to make a multi-scale decomposition and combined reconstruction of the net load curves, and the improved whale optimization algorithm is used to solve the optimal allocation model with the objective of the minimum sum of the total system cost and active power fluctuation value. Finally, the effectiveness of the proposed scheme is verified with practical examples.