A　novel　pumped　hydro　combined　with　compressed　air　energy　storage　(　PHCA)　system　is　proposed　in　this　paper　to　resolve　the　problems　of　bulk　energy　storage　in　the　wind　power　generation　industry　over　an　area　in　China,　which　is　characterised　by　drought　and　water　shortages.　Thermodynamic　analysis　of　the　energy　storage　system,　which　focuses　on　the　pre-set　pressure,　storage　volume　capacity,　water　air　volume　ratio,　pump　performance,　and　water　turbine　performance　of　the　storage　system,　is　also　presented.　This　paper　discovers　how　such　parameters　affect　the　performance　of　the　whole　system.　The　ideal　performance　of　this　novel　system　has　the　following　advantages:　a　simple,　highly　effective　and　low　cost　structure,　which　is　comparable　to　the　efficiency　of　a　traditional　pumped　hydro　storage　system.　Research　results　show　a　great　solution　to　the　current　storage　constraints　encountered　in　the　development　of　the　wind　power　industry　in　China,　which　have　been　widely　recognised　as　a　bottleneck　in　the　wind　energy　storage　industry.