Energy systems based on wind as an energy source, are affected by the fluctuations in the generation and the variable consumer load demand. In this case, energy storage systems play a very important role in matching up generation and demand. Wind turbine can not supply the required energy continuously and the storage capacity is also limited. To overcome these difficulties, a diesel generator set (DGS) can be connected in parallel with the wind energy conversion system (WECS). In this study, the concept and performance analysis of an autonomous wind-diesel system with uncooled compressed air storage (UCAS) are presented. The main objective of this study is to design a realistic UCAS system that would maximize the wind energy penetration and thereby would minimize the fuel consumption. Computer simulation tools are crucial in modeling and simulating such systems. Various techniques can be used to improve the overall operating efficiency. Control, management, system integration, and measurement are key activities, which must be implemented in the system development. A mathematical model is developed and simulation has been applied to study the system performance. The necessary control system is analyzed and interesting simulation results are obtained.