Abstract: The participation of large-scale energy storage in the grid frequency regulation has become an important means to deal with frequency fluctuations caused by the grid connection of renewable energy. At present, the frequency regulation(FR) auxiliary services of all power grids are based on medium and long term time scales, and the intraday frequency regulation demand capacity and prices are fixed, which cannot reflect the fluctuation difference of real-time frequency regulation demand. A compensation mechanism of FR ancillary services based on the demand tightness is proposed, meanwhile, an evaluation model and the indexes that reflect the performance of real-time FR are put forward to guide FR resources to actively participate in the real-time regulation of the power grid. The joint dispatching strategy of fire and storage under the market mechanism is presented, which aims at minimizing the FR cost and is constrained by the technical characteristics of FR resources, so as to realize the real-time economy and performance indexes of each energy storage participating in the FR market can be measured and controlled. The Matlab/Simulink simulation model of the above market mechanism and control strategy is established. The results show that the proposed market mechanism and strategy is able to change the available period of energy storage to 100%, effectively enhancing the power grid's intraday fast frequency regulation capability. Even during the FR shortage period, the revenue of energy storage operators may increase by 45.00%, achieving a win-win situation.