Space Solar has partnered with Icelandic firms, Transition Labs and Reykjavik Energy, to pioneer the first commercial space solar power plant, aiming for operation by 2030.

The system will capture the Sun’s energy in orbit and transfer it to ground stations using high-frequency radio waves, enabling reliable, uninterrupted power transmission regardless of weather or daylight conditions on Earth.

This initial set-up is expected to provide 30 megawatts of electricity, with plans to scale to a gigawatt-level within six years after it first comes online.

With its innovative design, UK-based Space Solar’s proposed plant will far surpass the International Space Station in size, requiring reusable rockets like SpaceX’s Starship to achieve cost-effective deployment.

Though space solar power concepts have existed for decades, significant advancements in reusable rocket technology and partnerships with sustainability-focused entities have finally brought the idea closer to reality.

This project, which explores new renewable energy sources, is especially relevant to Iceland as it seeks to meet increasing energy demands driven by future data centres and developments in artificial intelligence.

Although the Nordic country has abundant geothermal resources, Space Solar’s satellite-based system offers the potential for a continuous, low-footprint energy solution that complements the nation’s existing infrastructure.

This venture could help drive down the costs of space access and advance global clean energy technology, even as it navigates technical challenges like energy transmission scaling and space debris management.