Intermittent　renewable　energy　generation　systems　bring　serious　adverse　impacts　to　the　stable　operation　of　the　grid.　In　this　regard,　large-scale　compressed　air　energy　storage　(CAES)　systems　with　the　potential　to　serve　as　long-term　could　be　a　solution　for　their　optimal　utilization.　However,　in　a　conventional　CAES,　most　of　the　electricity　is　transformed　into　heat　which　passed　into　heat　exchange　mediums　leads　to　serious　heat　transfer　losses.　In　this　study,　a　novel　CAES　system　employing　a　Kalina　cycle　to　effectively　utilize　the　pre-compression　heat　in　a　near-isothermal　compressed　air　process,　is　proposed　and　its　holistic　dynamic　model　is　developed　and　presented　for　a　deeper　understanding　of　performance.　The　results　showed　that　a　near-isothermal　compression　undertakes　the　responsibilities　of　storing　pressure　potential　energy,　and　the　adiabatic　pre-compression　process　helping　in　raising　the　inlet　pressure　of　the　liquid　piston　is　primarily　for　storing　thermal　energy.　In　addition,　the　Kalina　cycle　working　in　the　adiabatic　pre-compression　process　achieves　a　2.7　%　improvement　in　the　electrical　efficiency.　The　thermal　energy　storage　temperature　was　highlighted　as　the　key　factor　in　the　energy　allocation　among　the　Kalina　cycle,　the　thermal　energy　storage　component,　and　the　energy　releasing　sub-system　in　the　proposed　system.　Through　a　systematic　analysis　of　the　proposed　system　performance,　the　highest　electrical　efficiency　attained　was　65.1　%　with　a　353　K　storage　temperature.　©　2022