Installations of an Energy Storage System (ESS) with various functions such as power stabilization of renewable energy, demand management, and frequency adjustment are increasing. In particular, ESS for demand management is being established for high-voltage customers (300 KVA–1000 KVA) who have placed an Auto Section Switch (ASS) at the connection point within the distribution system. However, a power outage may occur in the Power Receiving System (PRS) when a short-circuit fault due to insulation breakdown occurs at the ESS DC side. The reason for this breakdown is that the fault current is reduced by transformer impedance, and the ASS is opened before the DC power fuse. Therefore, using the Graphic Solution Method (GSM), this paper presents an operation algorithm for protection coordination that isolates the fault section by first operating the DC power fuse with a small fault current. Furthermore, fault analysis modeling for a PRS composed of a switchgear section, a main distribution panel, a Power Conditioning System (PCS), a power fuse, and a battery is performed through PSCAD/EMTDC. From the simulation results, it is confirmed that the fault section is quickly isolated, and power outages for high-voltage customers are prevented because the DC power fuse selected by the proposed operation algorithm of protection coordination is opened before the ASS.