A system and method for generating power includes a motor assembly, an inertia-assisted, torque-enhanced gearbox, including a flywheel assembly and a clutch assembly, and a generator assembly. The motor assembly is used to drive the flywheel assembly up to the generator's designed operating speed. When the flywheel assembly reaches the generator operating speed, the clutch assembly engages and connects the flywheel assembly to the generator assembly. When the flywheel assembly is connected to the generator assembly, it supplies the generator with the starting torque required to start the generator. The motor assembly then supplies the torque necessary to operate the flywheel assembly and the generator assembly at the generator's designed operating speed. When the generator encounters peak loads, the flywheel assembly also supplies peak load torques to the generator assembly. The generator assembly is operable to supply power to a load connected to the generator assembly.