The Economic Impact of Space-Based Solar Panel Systems (SBSP) on Energy Markets: A Comparative Analysis with Solar Power Plants

Abstract

The increasing global energy demand, the environmental costs of fossil fuels, and issues related to energy supply security are all contributing to the growing importance of renewable and innovative energy sources. In this context, Space-Based Solar Power (SBSP) systems offer the promise of continuous energy generation and geographic independence by providing extended access to sunlight in Earth’s orbit. This study examines the economic impacts of SBSP systems on energy markets within a conceptual framework and analyzes them through a comparative lens alongside existing terrestrial solar power plants. By evaluating factors such as cost, efficiency, risk, and market integration related to the technology, the study highlights both the long-term potential and the short-term limitations of SBSP systems. In addition, the study incorporates projections tied to the development trajectory of the space economy by considering emerging technologies (such as OPVs) and private sector company initiatives. The study concludes that, despite current high costs and uncertainties, SBSP represents a promising investment area for the long-term in terms of strategic energy security and sustainability. It also addresses the potential threat posed by space debris to future SBSP projects.