Abstract: In order to evaluate the overall profitability of pumped storage power stations under the current dual pricing system and explore the direction for further optimization and development of the future pricing mechanism, we reviewed the relevant policies and development trends of pumped storage power stations both domestically and internationally.And a profit model was constructed for pumped storage power stations participating in the electricity market under the dual pricing system.Taking a specific pumped storage power station in Shandong Province as an example, an analysis and calculation were conducted.The results demonstrated that the dual pricing system can smoothly connect the main and ancillary markets of the power industry after the market-oriented reforms, showing strong feasibility and adaptability.Under the dual pricing system, in a mature electricity market, pumped storage power stations can achieve substantial profits by optimizing their operational strategies.It is recommended to timely study the pricing mechanism to connect with market-oriented reforms and accelerate the construction of auxiliary service markets.This will enable the full realization of the value of pumped storage power stations in providing auxiliary services.