In this study, a new compressed air energy storage (CAES) refrigeration system is proposed for electrical power load shifting application. It is a combination of a gas refrigeration cycle and a vapor compression refrigeration cycle. Thermodynamic calculations are conducted to investigate the performance of this system. Economic analysis is performed to study the operating cost of the system, and comparison is made with a vapor compression refrigeration system and an ice storage refrigeration system. The results indicate that the CAES refrigeration system has the advantages of simple structure, high efficiency and low operating cost. (c) 2006 Elsevier Ltd. All rights reserved.