Flywheel energy storage (FES) provides high density storage. Traditional systems relied on mechanical bearings. Bearings can be replaced by electromagnetic variations. Modern FES systems levitate inertial mass on electromagnetic cushions. Levitation consumes energy, so FES systems are confined to short-term power quality applications. An FES system that uses passive levitation is presented. Passive systems consume no energy. Utilizing diamagnetic materials, it's possible to stabilize unstable levitation. A vacuum-enclosed switched reluctance electric machine (SRM) designed around this stabilized levitation is proposed. The reduced friction and energy consumption is expected to extend the range of FES systems from short-term to medium-term storage applications.