Opportunities were found for electrochemical energy storage devices in the U.S. electric utility industry. Application requirements for these devices were defined, including techno-economic factors. A new device, the Redox storage battery was analyzed. The Redox battery features a decoupling of energy storage and power conversion functions. General computer methods were developed to simulate Redox system operations. These studies showed that the Redox system is potentially attractive if certain performance goals can be achieved. Pathways for reducing the cost of the Redox system were identified.