In electricity transmission networks, energy storage systems (ESS) provide a means of upgrade deferral by smoothing supply and matching demand. We develop a mixed integer programming (MIP) extension to the transmission network expansion planning (TEP) problem that considers the installation and operation of ESS as well as additional circuits. The model is demonstrated on the well known Garver's 6-bus and IEEE 25-bus test circuits for two 24 hour operating scenarios; a short peak, and a long peak. We show optimal location and capacity of storage is sensitive not only to cost, but also variability of demand in the network.