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The inherent intermittence and randomness of wind power different from conventional generators have issued major new challenges to the power system integrated with large-scale wind power.With developments and advances in battery energy storage system (BESS), it makes the application of BESS a potentially feasible solution to overcome such problems and limitations.In this paper, BESS is used to meet the difference between actual wind power and the reference dispatch power of wind farm, which is suitable for the technical rule for connecting wind farm to power system.However, due to the highly cost of battery at present, it is a crucial requirement of the system designer or owner to determine the optimal capacity of installed BESS.Taking the effect of depth of discharge (DOD) on battery life into consideration, which is a primary determinant of battery life, a battery lifetime predication method is developed and introduced into the optimization model of battery deployment in this paper.According to the method and model mentioned above, the optimal size that is characterised by the rated energy and rated power of installed BESS is investigated for which wind power and storage system can achieve maximum annual net revenue.Computational results demonstrate the feasibility and validity of capacity deployment model in this paper over the traditional approaches that do not consider the variable characteristic of battery lifetime.