An economically viable space power relay system

Abstract This paper describes and analyses 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 which transport power ranging from 1250 to 5000 MW and distribute it to receiving sites at transcontinental distances. It is shown that, when offering electricity at prices competitive to those prevalent in developed cities in the USA, 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 higher 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 $ to the cost of energy provision. Since selling prices in feasible regions range from 0.18 to over 0.30 $, these costs are but a small fraction of the operating expenses. Thus a very large IRR is possible for such a business.