As energy systems shift away from fossil-fuel based electricity, the non-dispatchability of renewable energy converters (REC) continue to stress the grid infrastructure and conventional thermal generating units. These hybrid electricity systems require energy storage systems to buffer the variabilities of electricity supply and demand. Regenerative air energy storage (RAES) is an emerging technology that shows promise to overcome the barriers of REC variability. RAES uses a novel compressor/expander that approaches isothermal operation by spraying water into the piston/cylinder to absorb/release heat. RAES can be sized for power and energy independently, and has a high round-trip efficiency that can be boosted using low grade waste heat. Because of its novelty, new numerical models are necessary to investigate the sizing and performance of RAES systems. In this thesis a numerical simulation tool is developed to allow flexible and intuitive analysis of a range of hybrid energy systems involving RAES.