There's a good profile of Saul Griffith in last week's New Yorker. One of the companies he started, Makani Power, wants to use tethered UAVs (shown above) to generate power. Here's the relevant excerpt from the article. (Sorry about the scan, the New Yorker doesn't give out full text of most of its articles): Click for full size.
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We have a space elevator here at work. It just goes to the third floor right now, but I'm hopeful that technology will allow it to reach the moon some day. We're a lot closer than anyone thinks as far as being able to do this. Oh, and by the way, I also believe in Santa Claus.
Only thing i'd be worried about is a plane hitting the kite-site at 1500ft in the middle of the night...
Daniel
Google.org has funded this company.
There is power there, and they would hardly be the first to imagine using it. (kites have powered a variety of things in history - particularly in China where kites were invented.) Some theories suggest the Pyramids were erected using kites.
Good luck to them.
It would fly just like a stunt kite, either in large circles or figure eights.
I have flown stunt kites and run R/C sailboats... I know taht the power and speed you can get flying "close" to the wind is incredible.