The energy produced by renewable sources like solar and wind energy is intermittent and hence there arises a need to store them to balance the electricity demand and supply. This can be achieved by storing the surplus energy produced when the demand is low and supplying the same when the demand is high. In Advanced Adiabatic Compressed Air Energy Storage (AA-CAES), this energy is stored in the form of compressed air. The heat produced during compression of air is stored in Thermal Energy Storage(TES), using phase change material and the same is released for reheating of air to expand it through turbine, thereby making the process theoretically adiabatic.