Under the sponsorship of the Department of Energy`s Office of Utility Technologies, the Energy Storage Systems Analysis and Development Department at Sandia National Laboratories (SNL) contracted Frost and Sullivan to conduct a market feasibility study of energy storage systems. The study was designed specifically to quantify the energy storage market for utility applications. This study was based on the SNL Opportunities Analysis performed earlier. Many of the groups surveyed, which included electricity providers, battery energy storage vendors, regulators, consultants, and technology advocates, viewed energy storage as an important enabling technology to enable increased use of renewable energy and as a means to solve power quality and asset utilization issues. There are two versions of the document available, an expanded version (approximately 200 pages, SAND97-1275/2) and a short version (approximately 25 pages, SAND97-1275/1).