With the deepening of the power system reform,the maturity of power demand side management, and the rapid development of the energy storage industry, the state and the government have introduced corresponding policies, actively encouraging distributed energy storage equipment to fully utilize demand response resources, and participate in auxiliary services such as peak clipping, valley filling, frequency regulation, spinning reserve, black start and demand response. In view of the current problem that the user side energy storage resources are idle and the distributed energy storage equipment is not fully utilized, the technical and economic examples of the typical energy storage equipment of the user side participating in the power grid peakcutting and frequency.adjusting service are analyzed. Then, considering the actual situation of Shaanxi power grid and the development status of energy storage on the user side, the scientific and practical suggestions for improving the existing electricity price system, eliminating renewable energy and increasing government subsidies are proposed. These suggestions will encourage more energy storage users to participate in auxiliary services such as peak load shifting and frequency regulation, and promote the construction of the auxiliary service market in Shaanxi Province and the rapid development of the energy storage industry.