Distributed energy storage on the distribution network becomes an important technical measure to ensure reliable power supply and improve the efficient operation of the power grid.Aiming at the functional positioning of distributed energy storage in the distribution network, three basic application scenarios of alternative investment, guaranteed power supply and auxiliary service are proposed. On this basis, the grid enterprise and social capital investment boundaries are analyzed according to the regulatory and market environments. And two typical types of main investment construction of the distribution network side of the distributed energy storage project typical operating mode, profit model are put forward. Constructing a technical and economic model of two typical models of fixed energy storage periodic peak shift and mobile energy storage non periodic shifting, comparing the feasibility of investment substitution analysis projects of distribution network facilities, the case results show that fixed energy storage in the scenario of“leverage benefit”, and the mobile energy storage reaches a certain number of utilization times, the technical economy is better than upgrading the distribution network.