Fossil fuel-based energy model has caused serious environmental problems whereas wind power development has gradually become an important way to push low-carbon energy transition. However, with increased large-scale wind power being centrally connected to the grid and replacing traditional frequency regulation units, power systems with high wind power penetration are facing a severe frequency regulation issue. In addition, the high randomness and variation of wind power lead to frequent action of traditional frequency regulation units resulting in increased abrasion of the mechanical devices and reduced operating life. Therefore, it is urgent to develop a new frequency regulation method for power systems. The Li-ion ESS has flexibility and fast response characteristic, and large-scale application of Li-ion ESS has attracted extensive attention. However, current energy storage costs are relatively high and there is no effective frequency regulation compensation mechanism for ESSs in China. Therefore, the incentive for ESS to participate in power system frequency regulation has not been established. Consequently, some energy storage stations have not been fully utilized, resulting in a waste of resources. Accounting the cost of energy storage for frequency regulation is an important step for the development of energy-saving frequency regulation compensation strategy, which can help to promote the development of ESS to participate in the frequency regulation service market. Energy storage frequency regulation cost is related to not only the technology and economy of the ESS itself but also energy storage frequency regulation strategy, system frequency fluctuation characteristics etc. Previous researches have provided useful insights in these respects. The cost of ESS is closely related to its operating life which is affected by the operating conditions (charge-discharge power, depth of discharge) [1, 2] ambient temperature and other factors. The nominal life given by the manufacturers is the test result in a specific charge-discharge mode measured by the cycle chargedischarge time. When an ESS participates in grid frequency regulation, the charge-discharge mode will not be the same as the test conditions, resulting in the ESS operating life under frequency regulation mode being very different from the data given by manufacturers. Previous cost accounting method is based on the average cost of nominal life, which is very different from the actual cost. Therefore, it is an urgent need to develop a cost accounting method for frequency regulation of ESS considering the effect of life degradation.