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This paper presents a flywheel energy storage system, which uses a switched reluctance motor/generator. It is shown this device operating as a static shunt compensator, and how the power circuits can be controlled in distribution systems, to deal with loads that, for short periods of time, demand a considerable supplement of alternating real power. This device can also be used to attenuate the effects of short interruptions in energy supply. The implementation of the control system was simulated with a commercial program. The energy loss, due to friction, will be reduced using a superconducting magnetic bearing.