Due to increased focus on environmental issues one can see clearly the importance of new cost- and energy-efficient systems for production, storage and conversion of energy on board ships. Important changes in technologies and cost for power electronic c onverters and machines make such cost-reduction possible. Combined power plants and optimal designed and controlled electric drive systems are key strategies and components in new energy systems. This multidisciplinary research program will address both overall system energy management, system performance evaluation and key component development issues. In addition focus will also be on subsystems, like combined power plants with various types of power producers, and on components like high efficiency permanent magnet machines and high efficiency electrical converters. The research program will develop and employ theoretical system models and make extensive use of system simulation.