The liquid air is produce by off-peak power and can be stored at atomospheric pressure in a large tank. As on-peak power is needed, the stored liquid air is pumped to high pressure and fed to a combustor of a gas turbine. The energy storage efficiency of this system is greatly increased to more than that of a pumping-up power plant station, when cold heat of the liquid air is reused to produce new liquid air. If LNG cold heat is able to be used for cooling air at the inlet of the compressor, the electric power for generating liquid air is drastically reduced.