A new study from Navigant Research predicts the Defense Department’s annual spending on microgrid implementation efforts to hit $453.4 million this year and grow to $1.4 billion over the next nine years.
Navigant Research said Tuesday DoD has begun to explore microgrids in an effort to build up its cyber energy security and reduce dependence on fossil fuel imports.
“Perhaps the biggest impact the DoD could have on future microgrid growth globally is in the developing world,” said Peter Asmus, principal research analyst at Navigant Research.
DoD’s energy spending across its 280,000 buildings and 523 military bases is worth approximately $4 billion and that implementation of microgrids could help reduce that spending, according to the report.
The report noted that the White House’s push for higher defense budgets and tensions with North Korea could potentially drive U.S. and international investments in military microgrids.
Remote power systems have emerged as a potential grid infrastructure model amid the recent hurricanes in Puerto Rico and other islands in the Caribbean, according to the study.
Navigant also analyzed case studies, business models and challenges related to military microgrids as well as the market for such power grids that DoD fields across forward operating bases, stationary bases and tactical mobile systems segments as part of the report.