Compressed Air Energy Storage (CAES) is a technology that stores energy by compressing air in underground caverns or containers. When energy demand is low, excess electricity, often from renewable sources like solar or wind, is used to compress the air. This stored energy can later be released to generate electricity when demand increases. During peak demand, the compressed air is heated and expanded, driving a turbine connected to a generator. This process allows for efficient energy storage and helps balance the grid, making it a valuable solution for integrating intermittent energy sources and enhancing overall energy reliability.