Due to the operation characteristics of the power grid, there is a demand for power grid peak regulation every day, and the compressed air energy storage (CAES), having the characteristic of large energy storage capacity, can meet the demand well. This paper formulates the automatic control process of CAES energy storage stage and energy release stage by analyzing the process flow and operation process of the two stages. According to the operation characteristics of CAES system, this paper works out the system, process and concrete logic diagram for the automatic control. It provides a specific implementation method for the application of CAES in peak regulation of power grid, and has a broad application prospect.