Energy storage devices based on the CO2 thermal cycle (CTC) lose competitiveness in cold regions because of the decreased energy volume density and charge–discharge efficiency at low ambient temperatures. The CO2 hybrid thermal cycle (CHS) combines the CTC with the CO2 hydrate thermal cycle (CHT) to maintain a high energy volume density and charge–discharge efficiency regardless of the ambient temperature. The CHS-based energy storage system has been shown to have an energy volume density of 80–140 kWh/m3 and charge–discharge efficiency of 60 %–106 %. However, the economic feasibility of this system has not been considered. In this study, a numerical analysis was performed on the practical application and economic feasibility of CHS-based energy storage for the 100 % renewable energy microgrid of a pair of remote islands. In a case analysis of CHS installation in a microgrid for a remote island with 100 % renewable energy, the construction cost of CHS was 2/3 of that of pumped storage; the equipment cost reduction of CHS strongly depends on the type and amount of renewable energy to be interconnected, and therefore, the overall optimization of the power system is necessary.