The paper reports on investigation and development of a flywheel device intended for an energy storage prototype. The goal was to design and experimentally verify the concept of self-integrated flywheel with smart control of energy flow and accumulation. The Flywheel Energy Storage System (FESS) must has high energy efficiency and structural robustness. Investigation on structural dynamics of the composite flywheel connected with outer type rotor was carried out using Finite Element Method. The FESS is designed to run in vacuum and is supported on low-energy, controlled, active magnetic bearings (AMBs). The flywheel device of 10 MJ energy density and a weight of 150 kg with two integrated rotors/generators of 50 kW power density each is intended to operate up to 40 000 rpm.