The invention provides a novel distributed energy system combining a Rankine cycle and compressed gas energy storage technology and a method of the novel distributed energy system. Firstly, the noveldistributed energy system sufficiently utilizes low-grade smoke, gas and waste heat, constantly takes advantage of multistage waste heat, reduces heat pollution and improves the energy utilization efficiency of the system. Secondly, smoke and gas produced by the entire energy system is compressed by a compressed gas energy storage device, the stored high pressure gas is released at an electricityconsumption peak, electricity is generated for the second time, a cyclic utilization of materials is realized, and environment pollution is avoided. Thirdly, a heat exchanger enables the smoke, gas and waste heat to be used more sufficiently through heat exchanging, the produced heat load is provided for utilization directly, and the economic benefit is improved. Fourthly, the grid-connected electric supply generated through a gas turbine and an organic Rankine cycle generator unit can be used directly, maneuverability is adequate, and the economic benefit is improved. Fifthly, the cooling load generated through an absorption-type refrigeration unit can be used directly for cooling and the like, and the system energy utilizing efficiency is greatly improved.