The proposed studies will result in a better understanding of the SMES/utility network interconnection problems. The Superconducting Magnetic Energy Storage (SMES) system is a constant current source connected to the power network which operates at constant voltage. The interconnection of these two systems is complicated because the variable voltage and constant current of SMES has to be matched to the constant voltage and variable current of the network. This is particularly difficult under dynamic conditions. The objectives of this research project are to analyze a new interconnection concept and present a feasible engineering design that can be utilized in the design of the first large system.