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Annual Microgrid Implementation Spending by US DoD Expected to Exceed $1B in 2026
October 31, 2017 | Navigant ResearchEstimated reading time: 1 minute
A new report from Navigant Research examines the market for military microgrids deployed by the US Department of Defense (DOD), providing forecasts for capacity and implementation spending, broken out by segment and scenario, through 2026.
As the single largest consumer of petroleum in the world, the DOD is exploring the use of microgrids to decrease its heavy reliance on fossil fuel imports and to improve physical and cyber energy security. At the same time, the DOD can also use microgrids to reduce the $4 billion it spends on energy across its 523 installations and 280,000 buildings. According to the report from @NavigantRSRCH, annual microgrid implementation spending is expected to reach $453.4 million in 2017 and increase to $1.4 billion in 2026.
“The DOD has played a remarkably consistent role in commercializing new technologies that provide tremendous social benefits within the larger civilian realm of society, including microgrids,” says Peter Asmus, principal research analyst at Navigant Research. “Perhaps the biggest impact the DOD could have on future microgrid growth globally is in the developing world.”
According to the report, remote power systems may be able to offer a new model of grid infrastructure that is particularly relevant as Puerto Rico and other Caribbean islands rebuild in the wake of recent hurricanes. The current Trump administration’s emphasis on increasing DOD budgets, as well as simmering tensions with North Korea, could also provide fresh rationales for larger investments in military microgrids, both within the US itself and internationally.
The report, Military Microgrids, analyzes the market for military microgrids deployed by the US DOD in three key segments: stationary bases, forward operating bases (FOBs), and tactical mobile systems. The study provides an analysis of the market issues, including drivers, challenges, and business models, associated with military microgrids. Market forecasts for US DOD capacity and implementation spending, broken out by segment and scenario (conservative, base, and aggressive), extend through 2026. The report also examines programs and case studies related to military microgrids, as well as the competitive landscape.
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