The urgent energy transition needs a better penetration of renewable energy in the world’s energy mix. The intermittency of renewables requires the use of longer-term storage. The present system uses water displacement, in a lined rock cavern or in an aerial pressurised vessel, as the virtual piston of compressor and expander functions in a carbon dioxide heat pump cycle (HPC) and in an organic transcritical cycle (OTC). Within an impermeable membrane, carbon dioxide is compressed and expanded by filling and emptying pumped-hydro water. Carbon dioxide exchanges heat with two atmospheric thermal storage pits. The hot fluid and ice pits are charged by the HPC when renewable energy becomes available and discharged by the OTC when electricity is needed. A numerical model was built to replicate the system’s losses and to calculate its round-trip efficiency (RTE). A subsequent parametric study highlights key parameters for sizing and optimisation. With an expected RTE of around 70%, this CO2 PHES (pumped-hydro electricity storage) coupled with PTES (pumped thermal energy storage) could become a game-changer by allowing the efficient storage of intermittent renewable energy and by integrating with district heating and cooling networks, as required by cities and industry in the future.