With the increasing demand for energy in our country, new energy sources with wind power as the main force have been vigorously developed. However, the intermittent and unstable characteristics of wind power generation pose huge challenges to the large-scale grid integration of new energy sources. Compressed air energy storage (CAES) can balance the intermittency and volatility of new energy due to its "peakcutting and valley-filling" characteristics, and has great development prospects. This article first explains the development status and working principle of CAES, and then establishes a system simulation based on the existing data of a northwest wind power plant. The results show that the temperature of the thermal storage tank and the system work both increase first and then remain stable with the increase of the number of system cycles. The simulation results are in good agreement with the actual situation, which also verifies the feasibility of the system.