Abstract: In this paper, a multi-time scale active power optimization control mode of power balance optimization-AGC frequency modulation control-self-balancing control is proposed for the terminal distribution network to respond to the peak shaving and frequency regulation instructions of the large power grid and to control the surplus power not being connected to the grid, which ensures that the active power of the PCC point is not reversed, and responds to the peak regulation command of the large power grid on the 15-minute time scale, the frequency modulation command of the large power grid on the 3-minute time scale, and the self-balancing control of the active power of the terminal distribution network on the 0.5-1 s time scale. A multi-time scale optimization control model is established under the mode of residual power of the terminal distribution network not being connected to the grid, so as to ensure that the multi-time scale active power balance optimization control of the terminal distribution network is realized under the premise that the PCC point responds to the regulation and control instructions of the large power grid. Through simulation verification and analysis, it is proved that the multi-time-scale active power optimization control mode can effectively respond to the peak shaving and frequency regulation instructions of the power grid and control the residual power not being connected to the grid at all times, and has good robustness.