Abstract: The rapid charging and discharging capacities of energy storage system (ESS) can effectively address the issue of intermittent and uncertainty of renewable energy and its local consumption. The utilization of energy storage equipment on a large scale is hindered by the high initial investment cost and vacant energy storage capacity, however. In order to increase the utilization rate of energy storage equipment and reduce the vacancy rate of energy storage equipment, a dynamic allocation model of cloud energy storage capacity, which accounts for demand response, was proposed based on traditional cloud energy storage. First, in this paper we proposed a cloud energy storage capacity dynamic allocation strategy and established a model based on the essence of cloud energy storage leasing service. Then, the users accessing the cloud energy storage with renewable energy were modeled. To comprehensively examine the interconnections between users and cloud energy storage operators, as well as deeply explore their coupling relationship, a two-layer optimization model was established. The upper layer takes the maximum profitability of the cloud storage operator as the objective function, while the lower layer takes the lowest daily operating cost of the user as the objective function. The simulation results indicate that the proposed dynamic energy storage capacity allocation strategy and model can increase the utilization rate of energy storage devices, reduce the vacancy of energy storage capacity, and also exhibit a good economy.