An economically viable space power relay system

This paper describes and analyzes the economics of a power relay system that takes advantage of recent technological advances to implement a system that is economically viable. A series of power relay systems are described and analyzed which transport power ranging from 1,250 megawatts to 5,000 megawatts, and distribute it to receiving sites at transcontinental distances.

Two classes of systems are discussed—those with a single reflector and delivering all the power to a single rectenna, and a second type which has multiple reflectors and distributes it to 10 rectenna sites, sharing power among them. It is shown that when offering electricity at prices competitive to those prevalent in developed cities in the US that a low IRR is inevitable, and economic feasibility of a business is unlikely. However, when the target market is Japan where the prevalent electricity prices are much greater, that an IRR exceeding 65% is readily attainable. This is extremely attractive to potential investors, making capitalization of a venture likely.

The paper shows that the capital investment required for the system can be less than $1 per installed watt, contributing less than 0.02 $/KW-hr to the cost of energy provision. Since selling prices in feasible regions range from 0.18 to over 030 $/kW-hr, these costs are but a small fraction of the operating expenses. Thus a very large IRR is possible for such a business.