The Economics of Space Solar Power

This paper discusses the viability of beaming solar power from space as a terrestrial energy source in the future. It presents an analytic method for evaluating space solar power (SSP) as an investment, and discusses sources of data for determining both costs and benefits. Much of the research and analysis on which this paper is based was conducted as part of an on-going study for the Advanced Concepts Office of NASA's Office of Space Access and Technology and the Advanced Space Analysis Office of Lewis Research Center. This study is designed to be a fresh look at space solar power, updating a major study conducted by NASA and DOE in the late 1970's, and reconsidering assumptions made in that earlier analysis. Encouraging results have led to a second phase of the current study. This study has focused on whether space solar power is an advanced concept appropriate for investment by NASA. The criteria used by this study in assessing the value of space solar power reflect a changing NASA paradigm, by considering technologies in the context of the economic and financial issues. This paper summarizes the overall study approach, and reports on the methodology used for assessing the economic viability of space solar power: (1) presents an analytic structure for considering space solar power investments in terms of internal rate of return and net present value, (2) demonstrates how findings from research conducted in the late 1970's can be used to develop cost estimates for systems that use newer technology and different architectures, (3) summarizes trends in world energy consumption that can be used to estimate future demand, and (4) discusses externalities associated with energy production and their impacts on the financial and economic viability of space solar power systems.