In order to achieve Chinese goal of carbon peak and carbon neutrality, it is a trend to introduce renewable energy into large-scale power grids. Owing to the increasing penetration of renewable energy, the wind and solar power integration brings critical challenge to the stable operation of power grids, so it is necessary to allocate active and reactive compensation devices．With the perfect dynamic response of active and reactive power, energy storage system can smooth power fluctuations caused by intermittent and uncertain renewable energy, which is helpful for peak load shifting. Firstly，this paper starts from the energy storage technology development, and introduces the domestic and foreign research status of energy storage participating in the auxiliary service market of power peak regulation and frequency modulation. Secondly, a comprehensive review is conducted on the optimization configuration of energy storage systems that take into account peak shaving and frequency regulation requirements．From a single type of energy storage to a hybrid type of energy storage, two different perspectives are analyzed and summarized, and the solving algorithms including optimal configuration of energy storage systems are summarized. Then，from the perspective of collaborative operation，this paper presents a grid-friendly new power system based on energy storage participation, elaborates on collaborative scheduling methods and control strategies in multiple time scales and multiple regions. Finally, the future research direction of energy storage is prospected from four aspects: shared cloud energy storage, numerical intelligent aggregation modeling，intelligent and adaptive control technology, and improving multi-regional cooperation and standardization policy mechanism.