To reduce greenhouse gas emissions and the environmental impact of fossil fuels, Morocco has decided to increase the use of renewable energy resources. The intermittent nature of renewable energy resources causes instability in the power grid. Energy storage is the appropriate solution to this problem. Compressed air energy storage is a technology that stores energy in the form of high-pressure compressed air in above ground tanks or underground caverns. Large-scale storage of compressed air energy requires the storage of large volumes in salt caverns or aquifers. The aim of this paper is to find out the benefits of integrating underground compressed air energy storage technology. A case study in Morocco is used to estimate the levelized cost of energy plus storage (LCOES). The annual capacity factor for solar and wind power plants and the potential of underground caverns in Morocco were analyzed. The results illustrate that for a system with 100 MW capacity installed in the Casablanca region, the combination of an adiabatic compressed air energy storage system (ACAES) with a wind turbine installation offers the lowest electricity price per kWh, with average LCOES of 0.04 $/kWh.