A key aspect of CAES is the optimal configuration of the thermodynamic cycle. In this paper, the situation of cooperation between the current conventional power plants and wind farms is analyzed, and then, based on thermodynamic models, the process of storing thermal and electrical energy in the CAES system coupled with a heat storage and recovery is developed. Therefore, three levels can be distinguished, namely: the global level of energy production; the central level of energy conversion and storage; and the local level of heat storage. Two different types of a CAES, with and without an Underground Heat Exchanger (UHE), were analyzed. The round-trip efficiency of CAES with a UHE approaches 52.26%. The article also analyses transient phenomena of charging and discharge the heat storage with UHE. The heat transfer rate and temperature received from the underground thermal energy storage was estimated. For this purpose, preliminary thermal-FSI approach was coupled with zero-dimensional model of CAES. The newly proposed CAES with a UHE, never studied before, can be used for applications requiring a high round-trip efficiency. (C) 2021 Elsevier Ltd. All rights reserved.