A UPS with an energy storage function using long-cycle-life VRLA batteries has been developed. Combining the functions of UPS and energy storage is effective to enhance the cost-effectiveness of the UPS. New long-cycle-life VRLA batteries, with capacities of 1000 or 1500 Ah at 2 V, have been developed for the UPS. A cycle life of 3000 or more cycles was estimated from our cycle test. The UPS has been installed in a telecommunications building for field-testing. This paper describes the system configuration, electrical characteristics of the UPS and its components, and result of our field test.