Superconducting magnetic energy storage (SMES) has been under development for electric system applications for some time. Large units (greater-than-or-equal-to 10 MWh) have been designed for electric load management. Small systems (<10 MW) have been designed for power quality enhancements. Small systems, in particular, can provide momentary carryover on a distribution network, thus avoiding outages in customers' electric supply. The price of today's small units is relatively expensive. The objective of this study was to evaluate possible cost reductions of small SMES devices to determine long-term feasibility for use in utility's systems.