HomeDecentralized EnergyCommunity EnergyUS military microgrid spend to exceed $1bn by 2026

US military microgrid spend to exceed $1bn by 2026

Analysis from Navigant Research predicts that the US Department of Defense is set to spend over $1.4bn on microgrids at its facilities by 2026.

The deep-dive research done on the subject found that the military is motivated by health, energy efficiency and finance in its interest in the the technology.
US Department of Defense insignia
As the world’s single largest consumer of petroleum the US Department of Defense is expected to double-down on deploying military microgrids to sustain its operations, with annual microgrid implementation spending expected to reach $1.4 billion in 2026, according to a new deep-dive by Navigant Research.

The new US Secretary of Defense, James Matthis, recently stated that high mortality rates from transporting fossil fuels to combat missions in Iraq and Afghanistan are one of the reasons he wants to double-down on microgrid deployment.

Physical security and cybersecurity also feature highly in priorities.

The consultancy concluded that by using microgrids the Department of Defense would be able to reduce the $4bn it currently spends on energy across its 523 installations and 280,000 buildings. Further, Navigant predicts that spending on annual microgrid implementation will increase from $453.4m in 2017 to an impressive $1.4bn in 2026.

In terms of projects, Navigant Research’s base scenario envisions 104 MW worth of military microgrids coming online in 2017, increasing to 441 MW annually by 2026. This would be led by the United States Army with 29.5 MW in 2017, followed by the Marines with 27.6 MW and the Navy with 26.5 MW. By 2026, the Army would install 126.8 MW.

“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,” explained 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.”