Satellites are not cheap business. They cost a lot of money to design, construct, launch and monitor. Just how much money? If you have at least $290 Million Dollars US in your bank account, that money can go into making a satellite that can track and monitor hurricanes. Add about $100 Million Dollars more if you want a satellite that carries a missile-warning device.
Some of the factors that drive the cost of satellites are the equipment and materials used to build them. There are several other gadgets and equipment that have to be built into the satellite in order for it to perform its intended function. These can include computers, computer software and cameras.
Another factor that contributes to the expense associated with satellites is the cost of putting one into orbit. It is estimated that a single satellite launch can range in cost from a low of about $50 million to a high of about $400 million. Launching a space shuttle mission can easily cost $500 million dollars, although one mission is capable of carrying multiple satellites and send them into orbit.
Also to be considered in the cost of satellites is its maintenance. After getting one into orbit, it has to be monitored from a ground facility, which will require manpower.
Main Factors Determining Launch Costs
India's indigenous cryogenic engine undergoing tests at Liquid Propulsion Systems Center
It should be a straightforward and standard economic exercise to measure a demand curve and cost curves for launch vehicle and services:
• All launch vehicles are subsidized by Government of India
• The price charged to the government may not reflect the true costs to the government (i.e. infrastructure, internal R&D and other support functions such as tracking and data retrieval)
• The price of a launch is only one of many considerations for a commercial launch (others are: Reliability, Risks, On-time guarantees, Re-flight options, Insurance, etc.)
• There are many different destinations in space that require vehicles with different capabilities for: LEO, MEO, GEO orbits, and deep space probes
• Different planes and inclinations
• Varying Size (weight) of payloads
• Each payload and customer generally requires customized services
• Demand for launches is derived from the various uses of space technologies that can range from telecommunications to Earth observations
• Many vehicles that compete commercially are marketed through nations such as America, France, Russia Ukraine and China that are historically non-market economies
The PSLV Success Story
The Impact on Commerce & International Cooperation using PSLV Launch Vehicle
The Polar Satellite Launch Vehicle or (PSLV) is the 'work-horse' rocket of Indian Space Research Organisation (ISRO). The amount of revenue earned by this vehicle is significant considering that the commercial arm of ISRO, Antrix had until Dec 2015 earned revenue of US $ 17.7 Million and Euro 79.98 Million by launching 51 satellites from 20 countries. The trend is expected to continue with Antrix likely to earn revenue of US $ 4.54 Million and Euro 63.91 Million by launching 25 satellites from 7 countries during the period 2015-2017. With regards to enhancing national pride and furthering international cooperation, ISRO with its PSLV has a track record of 30 successive flight successes and a proven capability to carry out different types of missions [viz., Low-Earth Orbit – low inclination to Sun-Synchronous; Sub-Geo-Synchronous Transfer Orbit (Sub-GTO); Geo-synchronous Transfer Orbit (GTO)] and also with ability to launch multiple satellites in a single mission, has emerged as one of the most competitive and reliable launch service providers in the world.
However, the distinguishing aspect is the cost. India’s PSLV is far cheaper at around $ 15 Million as opposed to the US’ Minotaur launch that cost a whopping $ 28.8 Million. On similar lines, the approximate cost of a single Dnepr launch ranges between US$24 and US$30 million. India aims at further reducing the cost of launch and with regards to both the US and Russia, the costs are only expected to rise. At half the price, India already presents a great opportunity to the world that would only get better once the prices are slashed further. Further, the Russian-Ukrainian Dnepr rocket program, which captured a significant share of the small satellite launch market over the last 15 years, has been halted by deteriorating relations between the those two nations. The relations are not expected to change overnight and hence India could do well to ride purposefully on the advantage.
The opportunities are not lost on foreign players also; for instance companies like Spaceflight Industries, a Seattle-based firm that arranges ride share launch opportunities for small satellites, convinced the U.S. government to grant waivers for U.S. satellites to launch on PSLV missions starting last year.
The GSLV Equation
At present, ISRO has two launch vehicles, the four-stage PSLV for placing satellites in polar orbit and the three stage GSLV to place satellites in the Geosynchronous Transfer Orbit (GTO). The latter is heavier, more powerful, has a higher payload capacity and costs about US$32 million to launch, nearly double that of PSLV.
The cost of launching satellites has come down dramatically in recent years thanks to the emergence of India as a significant player in space and related technologies. ISRO, the country’s premier space body which launched its Mars mission, is now working on slashing rates even further, as it develops new technology to meet future challenges.
Many countries that do not possess the technology to launch satellites, and were earlier dependent on American or Russian agencies, are now looking to ISRO.
According to ISRO officials, both the PSLV & GSLV vehicles are built on the same platform. They have several common components and the fuel used to fire them is also the same, barring the cryogenic stage in the GSLV. This has helped in containing costs to some extent. With the global launch industry being competitive, ISRO has been cutting costs. It has, for instance, started using indigenous materials like aluminum and titanium alloys to rein in the costs.
Air-Breathing Engines
ISRO GSLV Mk-III Heavy Lift Launch Vehicle
ISRO is also in the process of developing air-breathing engines, which will use atmospheric oxygen and burn it with the stored on-board fuel for producing the forward thrust; in contrast, conventional chemical rocket systems carry both oxygen and fuel on-board. The air-breathing systems will be much lighter and more efficient, leading to reduced overall costs.
ISRO’s Liquid Propulsion Systems Center, is looking at reducing the number of fuel stages to cut the launch cost. “GSLV’s Mark III will have reduced fuel stage, cutting costs significantly. The launch vehicle is being designed to carry a 4-tonne payload and is expected to cost half of what GSLV costs now.
Modular Approach & Tech Improvements
The other cost-reduction strategy is to go in for modular assembling of vehicles. At present, ISRO sources components and assembles them. What is being planned is to source assembled components from vendors so that ISRO makes the launch vehicles faster.
ISRO is also improving avionics by upgrading processors. While it uses Motorola’s processors at present, it has developed a new one called "Vikram". More than the cost savings, indigenous chip designing is of strategic interest. ISRO is also constructing another launch control center (probably in Tamilnadu) to reduce the cycle time for launches. It already has two launch pads at Sriharikota in Andhra Pradesh.
ConclusionThe Indian agency is now building a smaller launcher that will cost 40 per cent less than existing ones to orbit satellites into space for low-cost launches. The new launcher would take around six months to build. The low-cost launcher will be lighter than earlier versions, as it will not have the six first-stage solid propellant strap-on motors, which will lower costs significantly. It will also save 400 kg of propellant in the fourth stage.
The cost-cutting measures include reducing the number of fuel stages in a vehicle, use of new engine-air breathing engine and using cheaper fuel and modular assembling.
The cost-effective solutions that ISRO is working on will ultimately bring down the cost of launching satellites, attracting many other space and research agencies from around the world to utilize space on its rockets. As these technologies have been incorporated in the GSLV Mk-2 vehicle, ISRO’s launch capabilities will come to the fore after the successful launch of this vehicle this month. For ISRO, there is enough room for growth and the only limit is the sky. (With inputs from the works of Wg Cdr Kiran Krishnan Nair Research Fellow, CAPS, Henry R. Hertzfeld, Ray A. Williamson & Nicolas Peter - Space policy Institute)
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