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Compressed Air Energy Storage (CAES) plants are largely equivalent to pumped-hydro power plants in terms of their applications, output and storage capacity. But, instead of pumping water from a lower to an upper pond during periods of excess power, in a CAES plant, ambient air is compressed and stored under pressure in an underground cavern. When electricity is required, the pressurized air is heated and expanded in an expansion turbine driving a generator for power production.

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