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The energy problem was solved by Freeman Dyson et. al. in the 50s at Los Alamos [1]. Here are his paraphrased proposals:

Kardashev Level I (http://en.wikipedia.org/wiki/Kardashev_scale)

Dyson fusion engines.

He's not talking about unviable Tokamak designs (http://en.wikipedia.org/wiki/Tokamak), but something much simpler. Basically use H-bombs (which are the only tried and tested fusion technology) to drive a large internal combustion engine. The energy released by each explosion is stored by using it to lift water back into hydraulic dams.

Kardashev Level II

Dyson rings and shells (http://en.wikipedia.org/wiki/Dyson_shell).

Kardashev Level III

"Lather, rinse and repeat" with Dyson shells.

[1] Just as all problems in computer science were solved (in principle) at Xerox PARC in the 70s, all energy problems were solved (in principle) at Los Alamos in the 50s.



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