A flywheel system includes a fixture providing a base and a stator, rotor having a cavity to receive the stator, a generator/motor module having a plurality of permanent magnets mechanically coupled to the rotor and an active magnetic bearing module. The active magnetic bearing module includes a plurality of magnetizable elements mechanically coupled to or integrated in the rotor, and a plurality of electromagnets mechanically coupled to a shaft and configured to magnetically couple with the plurality of first magnetizable elements to actively stabilize the rotor relative to the fixture. The windings of the generator/motor module are arranged around the rotation axis of the rotor at a first distance from the rotation axis of the rotor, the electromagnets of the active magnetic bearing module are arranged around the rotation axis of the rotor at a second distance, and the first distance is greater than or equal to the second distance.