Space-Based Solar Power Aims for 2028 Grid Connection Amid Rising AI Demand

The growing energy demands stemming from artificial intelligence (AI) data centres are driving increased investment and development in space-based solar energy, according to a report by OilPrice.com. This includes both public and private sector funding for technologies such as orbiting solar panels.

Space-based solar power is designed to address the intermittency of terrestrial solar energy by capturing sunlight 24 hours a day in orbit. The captured energy would then be transmitted to Earth via lasers or microwave beams.

While the concept of space-based solar power has been explored for decades, a recent surge in interest and investment from the technology sector is prompting several startups to anticipate operational capabilities within a few years.

Overview Energy Targets Early Grid Connection

Virginia-based startup Overview Energy states it could supply solar power from orbit to the grid as early as January 2028. The company’s co-CEO, Darko Filipi, reportedly told the Washington Post that Overview Energy believes it can provide utility-scale power with this technology.

Overview Energy has entered into an agreement with Meta to provide up to 1 gigawatt of space solar energy. Filipi also estimates his company could meet one-fourth of the country's energy demand growth over the next decade.

Market Context and Skepticism

The push for space-based solar is partially driven by the challenge of land scarcity for large-scale solar farms. Space-based systems could potentially fulfil a quarter of new US demand without requiring additional ground construction.

Despite the optimism from some developers, skepticism exists regarding the economic viability of space-based solar in the near term. OilPrice.com notes that Stanford physicist Amory Lovins has expressed doubts about the economics, and most projections suggest space-based solar may not be cost-competitive before 2040.