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>I think you can store energy here not just in the gravitational potential energy of the water, but also in the compression of the air. I _think_ this means that you can get away with a smaller cavern than you could for just pumped hydro.

+ they are storing the heat extracted from compressing the air.

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I want to know how this heat storage works. It seems kind of important?

isn't that used when decompressing the air, i.e. closed loop

You just pull that from the atmosphere.

Compress to store [potential] energy, take the heat generated during compression and use it, decompress at time of need and let the [hot?] atmosphere supply energy to the decompressing gas.

I wouldn’t call it a closed loop, but maybe a lack of deficit.

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