everything is imaginable, but the generator in the air failed at makani (google).
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Here is a short review article on AWE: https://authors.elsevier.com/c/1cyjW4syv1q-kj
The weight of the cable would be more of a problem here. A way to transmit rotation over long distances, besides through electrical cables, is via rope drives.
all of this is possible, but I consider the movement back and forth to be much easier to resalise.