Energy storage is important for renewable energy systems. Compressed air storage is an attractive alternative to pumped water Storage. It is suitable for use with wind-energy systems. We have studied a system consisting of a wind turbine, compressor, storage tank, and air-lift pump. The output power and capacity factor were accurately determined. Characteristics of the air-lift pump were investigated by using a numerical model. Wind turbines with compressed air storage and capacity factors greater than 40% are feasible with air-lift pumps. With air-lift pumps, increases of air-flow rates were accompanied by corresponding increases in water-flow rates, up to maximum outputs. The efficiency of the system reaches 22% when the ratio of water to air flow rate equals 2.15 and decreases thereafter.