Compressed air energy storage (CAES) is one of the important means to solve the instability of power generation in renewable energy systems. To further improve the output power of the CAES system and the stability of the double-chamber liquid piston expansion module (LPEM) a new CAES coupled with liquid piston energy storage and release (LPSR-CAES) is proposed. The coupled LPEM conducts suction stage B at the end of the expansion stage, ensuring stable exhaust pressure and temperature for the module. By establishing the thermodynamic and economic models of LPSR-CAES, the effect laws of key node parameters on the system performance are investigated. The results show that the heat transfer between liquid droplets and air dominates the heat transfer in LPEM. The proposed LPEM exhibits excellent isothermal performance and stability, with a maximum temperature difference of about 20 K during the cycle, and stable exhaust temperature changes within 10 K. Under the design conditions, the converted electrical efficiency, round-trip efficiency, exergy efficiency and net present value of the system are 68.31 %, 58.86 %, 66.99 % and 12.25 M$ respectively. The higher the solar supplement temperature, the more outstanding the thermal and economic performance of the system. The short-term energy storage system performance of the proposed system is more prominent. Based on the actual light data, the system can achieve 72.09 % and 69.41 % of converted electrical efficiency and exergy efficiency, respectively, at the 219th day. The results of this study provide theoretical support for the engineering application of the proposed system.