The structure and operation mode of traditional power grid have undergone drastic changes under the situation of new electric change plan and Internet +. Distributed energy storage as a major energy regulation link in the power grid has ushered in a new development opportunity. Therefore, it is necessary to make a thorough analysis of its typical application scenarios and operation mode. Firstly, the typical characteristics of distributed energy storage are summarized, and the access mode of distributed energy storage in power system is demonstrated. Secondly, the application scenarios of distributed energy storage are divided. Five typical application scenarios of distributed energy storage and their utilization value are analyzed. Based on the typical application scenarios, an evaluation index system of distributed energy storage in distribution network is proposed, which can effectively evaluate its operation benefits. Finally, the existing and possible future operation modes of distributed energy storage are analyzed, and further research is prospected. This work is supported by Science and Technology Project of the Headquarter of State Grid Corporation of China (No. PD71-18-011) “Research and Application of Distribution Network Flexibility Lifting Technology based on Distributed/Mobile Energy Storage”.