Abstract: The large-scale application of energy storage technology is an effective way to improve the economic performance and safety of the power grid containing renewable energy. In order to reasonably evaluate the economy of energy storage in the power grid, the life cycle cost method is adopted, according to the energy storage cost and technical characteristics of pumped storage power station, such as compressed air storage, lead-acid battery, sodium sulfur battery, liquid flow battery, lithium ion battery, etc. The investment, annual cost and electricity cost of various kinds of energy storage are calculated, and the economy of various types of energy storage under different utilization hours is compared. The research results show that the minimum cost of electricity storage for pumped storage power station is the lowest, followed by compressed air energy storage, and the highest energy cost of battery energy storage.