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Based on actual characteristic of Chinese power system, starting from the practice, this paper puts forward auxiliary service compensation mechanism designing principles in present Chinese power market. Following the spirit and the idea of provisional measures of auxiliary services management of the grid-connected power plant, combining the actual situation of wind power in China, this paper studies the compensation mechanism of auxiliary services, including compensation method of AGC service, reserve service and reactive service, and gives preliminary definition of the classification of the auxiliary services in the power system of our country. This paper introduces various methods of ancillary services assessment and settlement in wind power plant, and puts forward a suggestion of the demand response resource participating in reservation market. In addition, this paper analyzes the results of introducing demand resources to auxiliary service market, providing reserve capacity, and which verifies the rationality and feasibility of the mechanism.