Large-scale energy storage is known as an effective way to shift on-peak electricity loads to off-peak periods, and utilize wind, solar, and other types of new energy sources which are volatile and intermittent. Basic principles of compressed air energy storage (CAES) are firstly introduced,and technical advantages of non-afterburning compressed air energy storage (NF-CAES) based on compression heat recovery is expounded, including characteristics of supplying cold, heat, and electricity simultaneously,and key technologies of CAES are discussed.The state of art of CAES at home and abroad is analyzed. Finally, the potential application prospects of CAES in future power grid and micro-energy grid are discussed.