Sustainable and climate-friendly space heating and cooling is of great importance for the energy transition. Compared to conventional energy sources, Aquifer Thermal Energy Storage (ATES) systems can significantly reduce greenhouse gas emissions from space heating and cooling. Hence, the objective of this study is to quantify the technical potential of shallow low-temperature ATES systems in terms of reclaimable energy in the city of Freiburg im Breisgau, Germany. Based on 3D heat transport modeling, heating and cooling power densities are determined for different ATES configurations located in an unconsolidated gravel aquifer of varying hydrogeological subsurface characteristics. High groundwater flow velocities of up to 13 m d−1 cause high storage energy loss and thus limit power densities to a maximum of 3.2 W m−2. Nevertheless, comparison of these power densities with the existing thermal energy demands shows that ATES systems can achieve substantial heating and cooling supply rates. This is especially true for the cooling demand, for which a full supply by ATES is determined for 92% of all residential buildings in the study area. For ATES heating alone, potential greenhouse gas emission savings of up to about 70,000 tCO2eq a−1 are calculated, which equals about 40% of the current greenhouse gas emissions caused by space and water heating in the study areas’ residential building stock. The modeling approach proposed in this study can also be applied in other regions with similar hydrogeological conditions to obtain estimations of local ATES supply rates and support city-scale energy planning.