An important part of auroral research is to understand the generation of the auroral current systems and the acceleration of auroral electrons (responsible for the auroral emissions which can be seen on the ground). This grant addresses three separate but related topics which are concerned with the coupling, energetics, and dynamics of the magnetosphere-ionosphere system and the auroral acceleration process due to Alfven waves. The first topic is an investigation of the ionospheric cavity and its relationship to auroral arc breakup. The second topic is the coupling of the shear flow generator at the low latitude boundary layer to the auroral ionosphere. The third topic is an investigation of a new mechanism for auroral electron acceleration due to Alfven wave breaking. These investigations will be carried out primarily through fluid simulations using fluid models though a hybrid kinetic simulation will be used for the third topic.