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Receiving-end power grids are characterized by substantial loads and demand-side responsiveness. Considering demand-side response during energy storage allocation can reduce allocation capacity， thereby enhancing the economy and feasibility of the allocation. The paper focuses on energy storage within the receiving-end grid and introduces an energy storage allocation method that takes account of the grid’s demand-side response capacity. This method aims to analyze the potential for replacing energy storage with demand-side response. The optimal allocation of multiple energy storage is achieved by minimizing the storage allocation cost， cost of wind and solar PV generation curtailment， demand response compensation cost， and load shedding cost as the objective functions. The impact of demand-side response on energy storage capacity allocation is analyzed by controlling the capacity and pricing parameters of demand-side response. It is revealed through a numerical analysis that the demand-side response plays a significant role in substituting lithium iron phosphate battery energy storage， and that the pricing parameter of demand-side response exerts a more substantial impact on energy storage capacity allocation.