Abstract: An introduction was presented on the technical characteristics and application scenarios of compressed air energy storage, and based on the development circumstance of the domestic compressed air energy storage technology, researches and analyses were conducted on the orientation of compressed air energy storage station in the future new power system. After which, the economy of compressed air energy storage station with different air storage methods was researched and analyzed. The cost of compressed air energy storage station is 6 000-11 000 yuan/kW obtained from comprehensive analyses, while the application of compressed air energy storage station should combine with operation mode.