3.0 Economic Analysis For the economic analysis, the SSPS and PRS were compared with terrestrial power generation and transmission systems of equal output capability. Based upon this economic comparison, recommendations have been made regarding the decision to initiate an SSPS or PRS development programs. For purposes of decision-making the following decision algorithm was formulated: • If the SSPS or PRS could be shown to be cost effective, compared with existing systems at todays relative prices (while meeting environmental and social constraints), then there should be little hesitation to go ahead with a positive development- to-operation decision; » If no future conditions could be identified under which the orbital systems would be cost effective, then the decision to curtail further development is warranted; • If the orbital systems are not cost effective at today's relative prices but may be cost effective under realistic future conditions, then the decision should be made to proceed with a limited development program designed to acquire the knowledge for making a later decision. 3.1 Economic Analysis of Power Generation Systems Table 3.1 provides an annual (ROM)* cost summary of an operational 5 thousand megawatt SSPS. The data represent only the recurring costs of the system and do not include DDT&E. Also, these costs are for a representative operational unit after "learning" has been accomplished. With an assumed operational life of 30 years, the busbar cost of energy generated by a 5 thousand megawatt SSPS would be 26.7 mills/kwh. This includes 15.0 mills for capital recovery *ROM: Rough Order of Magnitude (- a factor less than three)
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