NOVELTY - The energy conversion system has a buoy (10) that includes a pendulum (12) configured to rotate under the influence of wave motion. A generator (16) produces electricity by converting energy associated with the rotating pendulum. A transfer unit is provided to transfer the generated electricity, and to allow the buoy to rotate freely about a vertical axis or vertically-oriented shaft (14). A processing facility is provided for processing the transferred electricity. A counter-rotation unit is configured to allow the pendulum to rotate with respect to the buoy.    USE - Energy conversion system for transforming ocean wave energy into electrical energy.    ADVANTAGE - Provides a device for converting wave energy into usable power. Satisfies a predetermined condition to achieve a displacement-to-ballast ration that provides ample buoy response to wave motion. Provides efficient power transmission mechanism from pendulum and generator, and provides efficient operation due to reduced friction and omission of moving parts such as gears to support the pendulum within the shell components. Provides efficient assembly of buoy which is provided with a range of vertical and lateral motion to maximize wave-induced motion while preventing contact with adjacent buoys. Includes a power communication unit that can transfer electricity from buoy to power unit as electricity is generated, or electricity may be stored on buoy and transferred at a later time. Ensures improved mechanical efficiency of the buoy and improved flexibility in dealing with torsional loads exerted upon buoy and other components, and allows various gearing ratios and power transmission alternatives to be explored.    DETAILED DESCRIPTION - INDEPENDENT CLAIMS are also included for the following:    (1) an energy converting apparatus;    (2) an energy conversion method; and    (3) an electrical power generation method.    DESCRIPTION OF DRAWING(S) - The drawing shows the perspective view of the buoy used in the energy conversion system.    Buoy (10)    Pendulum (12)    Vertically-oriented shaft (14)    Generator (16)