Microgrids are accelerating due to perceived power grid bottlenecks and rising reliability requirements, especially at AI data-centers. Hence this 17-page report explores how microgrids work, what they cost, where they make economic sense, and finds microgrid opportunities, especially with an increasingly plug-and-play supply chain.
A microgrid is a group of interconnected generation sources and loads, that can be controlled as a single entity, typically through a central controller. This is illustrated via a detailed case study, charting component suppliers, on pages 2-3.
1,200 past microgrid projects in the US show an average size of 1.2MW, distribution by fuel type, by end customer, by State, and new sources of power supplies gaining ground, per pages 4-5.
Microgrids are a growing focus in 2025, due to the perception of power grid bottlenecks, and as some cuts of our numbers require US load growth of around 3% per year, to meet new loads, such as AI data-centers.
We modeled the economics of microgrids energized by a mixture of solar, batteries and different forms of gas-fired generation, on pages 7-8.
Incorporating solar+gas makes economic sense when delivered gas prices are above $10/mcf, per page 9.
Constructing microgrids makes economic sense when meeting new loads would otherwise require 30-50km of new distribution lines, possibly over challenging terrain, and/or when high power reliability is required, per pages 10-11.
What excites us most, based on our work, is the possibility of increasingly plug-and-play microgrids, overcoming some of the integration challenges of highly complex, bespoke, prior projects.
Our screen of leading microgrid companies is discussed, company-by-company, on pages 12-17, including economic details, case studies and other microgrid opportunities.