This paper presents a study on development of a packed-bed storage system for CSP applications. In this system, demolition wastes from urban regeneration projects in Turkey has been investigated as potential STESM for cost effective storage systems. Schumann’s two-phase one-dimensional model was used to evaluate the optimal design parameters. Effect of operational and geometrical design parameters such as mass velocity, porosity, aspect ratio of packed bed, packing diameter were assessed on storage performance. The system showed the best performance with low bed void fraction, low mass flow rate and low Rep.