Adelwitz Technologiezentrum (ATZ) and L-3 Communications Magnet Motor (L-3 MM) are currently mounting a compact-designed flywheel energy storage system (FESS) with total magnetic bearing support. Final assembly and test operation were performed during 2008–2009. After calculations and experiments, we decided to improve rotor stabilization by stiffer geometry. In addition, two dynamical emergency bearings contribute to robust and safe flywheel operation in critical revolutionper-minute situations. A planned energy capacity of 5 kWh is now obtained at about 8000 r/min, whereas an increased capacity of 10 kWh will be stored at a speed of 10 000 r/min. The total weight of the flywheel unit is about 1200 kg plus power electronics and cooling system. The heavier 600-kg rotor causes new design and construction work in mechanical elements, magnetic support bearings, cooling, and power electronics. Due to the here reported construction changes and increased rotor speed, scaling to even larger energy storage performance of 15–20 kWh seems achievable. ATZ and L-3 MM obtained a corresponding order to develop and deliver a 15-kWh/400-kW high-temperature-superconducting FESS for a Korean local grid UPS application.