Abstract: With the steady development of reforming in power market and the breakthrough of energy storage technology， the study of energy storage as a trader participating in the trading mechanism of power market has gradually attracted the attention of researchers， which has become an important problem to be solved urgently for further deepening the commercial operation of energy storage. Taking compensation mechanism of frequency modulation in California as a major application background， according to the power system 'supply-network-load-storage' coordination characteristics， as well as the technology operation and regulation characteristics of energy storage， considering the relevance of regulation capacity and regulation mileage of energy storage power station， this paper constructs a combined dispatching model for the energy storage as a trader to participate in the energy market and regulation ancillary service market. Simulation based on the improved IEEE 39-node system verifies the performance of the energy storage system in the California mode. The paper also analyzes the operating characteristics of the energy storage system and its impact on the system operation， as well as the profit distribution characteristics of the energy storage in the energy market and the regulation ancillary service market， which is profound significance to the localization of mature application mode of foreign energy storage participating in market.

Key words: energy storage, energy market, regulation marker, combined dispatching