Nasdaq listed Active Power, which sees itself as the leader in battery-free backup power solutions, yesterday announced that it has signed a CoolAir(TM) UPS (Uniterruptable Power System) usage plan agreement withGeorgia State University (GSU).

At the time of posting, the stock is performing well, posting a 14% gain to $3.16 a share. It is also trading much where it did a year ago, before peaking at 5.91 on April 18, 2006. Since then, obviously, it's had a tough time. So the question is, is it now lifting off from these lows in a meaningful way?

The company has been getting some good press for its flywheel technology. People like the green credentials of flywheels. As a UPS source, it is in competition with lead-acid batteries, diesel generators and fuel cells. According to Frost & Sullivan in this same article, the worldwide UPS market is estimated to be worth $6.1 billion in 2006 -  7.1%  growth on the year. Yet flywheels - both static and rotary - will only account for just under $200m of sales.

You can see an overview of the Frost & Sullivan report on flywheels here.