A major portion of the electricity demand in Denmark is provided by wind farms. As wind power fluctuates sharply, there may be either surplus power or electricity deficit relative to the local demand. Thus, storing the surplus electricity and reclaiming it in demand times can increase the power plant incomes and reliability. On the other hand, as Denmark is one of the countries in which energy consumers are supplied by district heating, the demand for efficient and reliable heat production systems is also high. In this work, a novel and efficient energy storage system capable of providing both heat and electricity is designed and analyzed. This system is a smart combination of a thermal energy storage system and a gas turbine cycle without any combustion chamber. In order to have an optimal configuration, the system is designed based on thermodynamics criteria and net economic revenue. It is shown that the designed system may present an overall energy efficiency of about 90% and an electricity efficiency of approximately 35%. The economic assessment indicates that this innovative high temperature heat and power storage system, even taking into account conservative electricity and heat prices, is very profitable.