In the context of the rapid development of large-scale renewable energy, large-scale energy storage technology is widely considered as the most effective means of improving the quality and security of electricity. In the existing energy storage technology, advanced adiabatic compressed air energy storage (AA-CAES) technology has broad application prospects because of its advantages of low pollution, low investment, flexible site selection, and large capacity. However, the lack of an in-depth understanding of the dynamic characteristics of CAES systems has severely limited the development of system design and control strategy, resulting in a lack of commercial operation of large-scale CAES systems. This paper describes the design and implementation of a CAES plant and its controller for applications in the distribution network level. The dynamic mathematical models of AA-CAES were established and a feasible control strategy for the grid-connected process was developed to analyze the dynamic characteristics of the system in the discharge stage. The work done in this study provided a data reference for the deep understanding of the dynamic characteristics of AA-CAES, system design, and control strategy in the industry.