Abstract: Aiming at the problem of peak regulation caused by high proportion of renewable energy connected to the grid, a transaction mode of grid-side energy storage participating in peak shaving regulation auxiliary service market is proposed. First, the necessity of grid side energy storage participating in auxiliary service market and its direct and indirect economic benefits are analyzed. According to the current peak shaving ancillary services market, an energy storage in ancillary services market trading model is proposed, using market-based mechanisms to compensate. The clearing model of energy storage participation peak shaving auxiliary service market is established and solved by CPLEX, and a simulation example is constructed based on a certain day of the system to verify the validity of the proposed model. Finally, in order to improve the generality, the simplicity as well as the intuitive of the algorithms, the graphical user interface(GUI) of Matlab algorithm module is used for the packaging. The purpose of the proposed transaction model is to solve the problem of imperfect market mechanism of energy storage participating in auxuliary services, and to provide reference for the commercialization and application of energy storage in power system.