Abstract:With the deepening of the power system reform, maturity of DSM and the rapid development of energy storage industry, the government and state have promulgated corresponding policies to actively encourage distributed energy storage equipment to make full use of demand response resources and take the initiative to participate in peak load regulation, FM, rotary backup, black start and demand response and other ancillary services. In view of the fact that energy storage resources in the user side of Shanxi Power Grid are generally idle at present, the distributed energy storage equipment is not fully utilized. Combining the related policies and research results of the distributed energy storage equipment participating in auxiliary services and demand-side responses at home and abroad, Considering the actual situation of Shaanxi Province, under the principle of combination of scientificity and feasibility, this paper puts forward the suggestion on the operating mechanism and business model innovation of grid-connected distributed energy storage equipment on user side in Shaanxi Power Grid, and accelerates the construction of auxiliary service market and promotes the rapid development of energy storage industry.