Global microgrid enabling technology spending totaled nearly $112 billion in 2026
According to a recent report from Navigant Research, a leading US market research firm, global spending on microgrid enabling technologies is expected to reach nearly $112 billion by 2026. This significant investment reflects the growing importance of microgrids in modern energy systems, especially as the world moves toward more sustainable and resilient power solutions.
Microgrids have become a popular choice for managing and optimizing distributed energy resources (DER). These systems offer enhanced reliability and resilience, allowing local energy generation and consumption to be better integrated into the broader grid. At the distribution level, they help streamline complex energy structures, making it easier to manage renewable sources and reduce dependency on centralized power systems.
Peter Asmus, a senior research analyst at Navigant Research, emphasized that "microgrids are a key component of the emerging energy cloud. Their self-healing capabilities and ability to integrate renewable energy make them essential for future energy infrastructure." He added that by 2026, biomass, combined heat and power (CHP), diesel, fuel cells, hydropower, solar photovoltaics, and wind energy will dominate microgrid investments, forming the backbone of their value proposition by maximizing on-site energy generation.
Looking back at 2017, cogeneration was the most widely adopted technology for microgrid applications, with 655 MW of capacity installed during the year. Solar PV followed closely with 392 MW, and diesel-based systems accounted for 385 MW. However, the landscape is set to change dramatically by 2026.
The report predicts a sharp increase in solar photovoltaic installations, with microgrid-connected solar projects expected to reach 3,786 MW. Energy storage systems will also play a major role, with around 3,292 MW of microgrid-enabled storage capacity expected to be deployed. This shift highlights the growing focus on renewable energy integration and the need for flexible, responsive power solutions in the face of climate change and energy insecurity.
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