A flywheel energy storage assembly and a method for dissipating energy stored in a flywheel assembly is provided. The flywheel energy storage assembly includes a flywheel rotatably disposed in a flywheel housing, a fluid source, a braking actuator in fluid communication with the fluid source and an interior of the flywheel housing, a sensor, and a controller in communication with the sensor and the braking actuator. In response to a stimulus detected by the sensor, the controller directs the braking actuator to facilitate fluid communication between the fluid source and the interior of the flywheel housing to dissipate energy stored in the flywheel energy storage assembly.