Performance assessment of a cold thermal energy storage (ITES-Ice Thermal Energy Storage) system with ice slurry generation for closed space air conditioning purposes is conducted. A detailed energy and exergy analysis are performed for the baseline system and some parametric studies are also presented for varying environmental conditions. Exergy definition is linked to sustainability and reported with graphical representations. A compressor & condenser unit linked to an ice slurry generator and generated ice is stored at storage tank for specific hours of a day. Stored energy is then discharged to the building through a flat-plate heat exchanger. Thermodynamic analysis results suggest that high capacity cooling can be conducted with low capacity vapor compression refrigeration systems (VCR) by integrating ITES systems, leading to a significantly lower size and lower cost HVAC systems.