This article explores whether large-scale compressed air energy storage can be justified technically and economically in an era of sustainable energy. In particular, we present an integrated energy and exergy analysis of an idealized case of an advanced-adiabatic compressed air energy storage system and estimate its cycle efficiency. Based on our results, advanced-adiabatic compressed air energy storage (AA-CAES) seems to be technically feasible with a cycle efficiency of roughly 50% or better. However, our calculation shows that AA-CAES may not be as economically attractive as underground pumped hydro storage.
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