As a good load shifting technology for power grid, chilled energy storage has been paid more and more attention, but it always consumes more energy than traditional air conditioning system, and the performance analysis is mostly from the viewpoint of peak-valley power price to get cost saving. The paper presents a thermoeconomic evaluation methodology for the system with chilled energy storage, by which thermodynamic performance influence on cost saving has been revealed. And a system with chilled storage has been analyzed, which can save more than 15% of power cost with no energy consumption increment, and just certain difference between peak and valley power prices can make the technology for good economic application. The results show that difference between peak and valley power prices is not the only factor on economic performance, thermodynamic performance of the storage system is the more important factor, and too big price difference is a barrier for its application, instead of for more cost saving. All of these give a new direction for thermal storage technology application. (C) 2014 Elsevier Ltd. All rights reserved.