Based on a newly developed geological 3D reservoir model for the demonstration site of the ‘Freiburger Bucht’ in the Upper Rhine Graben (SW Germany), geothermal development and realization concepts of an aquifer thermal energy storage (ATES) in the Buntsandstein aquifer were elaborated and energetically evaluated by numerical modeling. The thermal–hydraulic coupled modeling was performed with the FE-software OpenGeoSys and COMSOL. For this purpose, the geological model was converted into a numerical model and calibrated by local and regional, hydrogeological and geothermal measured values. A detailed study based on two-phase storage-heating cycles per year with constant injection temperature on the ‘hot side’ of the ATES, different volumetric flow rates, and temperature spreads was performed to quantify possible storage capacities, energies, and efficiencies. The calculated efficiency of the cyclic storage operation in this study, averaged over 10 storage heating cycles, are between 50 and 85%, depending on flow rate and temperature spread. The efficiency of the individual storage heating cycles increases from year to year in all scenarios considered, as the ‘hot side’ of the storage heats up in the long term. To increase ATES’ efficiency, also horizontal wells were integrated into the numerical model and the results were compared with those of inclined wells.