Abstract Hybrid energy storage is a multi-modal approach to store and supply different forms of energy (electricity, heat, cold) simultaneously. This is an important sector coupling approach and enables large scale flexibility for a deep decarbonization of energy systems. Two different proposed energy storages – power-to-heat-to-X energy storage (PHXES) and pumped thermal energy storage (PTES) – are investigated in detail in this work towards their potential towards a hybrid deployment. The techno-economic analysis includes thermodynamic flowsheet simulations and unified cost estimations based on the used equipment. It is shown that the main input data set (e.g. working fluid selection, turbomachinery efficiency, pinch temperatures) has a strong influence on storage roundtrip efficiency in the thermodynamic simulations, but also on storage costs. Cost decrease and performance increase can be conflicting development targets, and it is not clear if future energy systems rather require technologies with the highest storage efficiencies or if low cost is an important prerequisite. PHXES and three variants of PTES are implemented into a simplified energy system model of the city of Hamburg that comprises the electric load and heat demand of the district heating system. Two scenarios (fossil benchmark and 80% decarbonization) are used to select the technologies and their capacities that allow the most cost-effective energy supply solution by a linear-programming optimization procedure. Large scale renewable power generation and hybrid energy storage play the major roles in the decarbonization scenario. PHXES with a storage capacity of 69 GWh, hot water storage (3.6 GWh) and a battery system (430 MWh) are part of the cost-optimal solution. A cost sensitivity analysis shows that a total cost reduction of 60–80% is required for PTES to become competitive in this model scenario.