Military Microgrids

US DOD Stationary Base, Forward Operating Base, and Tactical Mobile Systems: Market Analysis and Forecasts

The US Department of Defense (DOD) is the single largest consumer of petroleum in the world. Moreover, US military operations (as a single entity) represent the largest consumer of all forms of energy globally. The genesis of the DOD’s interest in improving energy security through microgrid technology stems from its heavy reliance upon all forms of fossil fuels, often imported from regions of the world hostile to US interests.

The DOD spends $4 billion on energy across its 523 installations that feature 280,000 buildings. Shifting from a reliance on backup diesel generators to large-scale microgrids could save the agency between $8 billion and $20 billion over the next 20 years. While the DOD is not the only military agency exploring microgrids as a platform to increase physical security and cybersecurity, its related efforts are the most advanced. Other nations rumored to be examining the potential for remote off-grid microgrids and nanogrids include the United Kingdom, Canada, France, Russia, and China. Given the sensitive nature of military operations, little data is available on these non-DOD microgrid projects.

This Navigant Research report 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.

Key Questions Addressed:
  • Why are vendors becoming more interested in military microgrids again?
  • Which branch of the US Department of Defense (DOD) has been the traditional leader in the military microgrid market?
  • What are some creative business models being applied to DOD stationary bases?
  • Which vendors are gaining traction in the DOD microgrid space?
  • When might all DOD military bases have a microgrid?
Who needs this report?
  • Microgrid solutions providers
  • Microgrid controls specialists
  • Defense industry prime contractors
  • Energy storage purveyors
  • Government military departments
  • Renewable energy manufacturers
  • Smart grid software vendors

Table of Contents

1. Executive Summary

1.1   Military Microgrids: Regaining Market Momentum?

2. Market Issues

2.1   Why Military Microgrids?

2.2   What Is a Microgrid?

2.3   Military Resilience Drivers

2.3.1   Terrorist Activity on the Rise

2.3.2   Energy Infrastructure Is a Top Target for Cybersecurity Attacks

2.3.3   DOD’s History of Technology Innovation

2.3.4   Current US Administration’s Potential Impact on Market Growth

2.4   Unique DOD Market Microgrid Programs and Business Models

2.4.1   Mandates, Contract Vehicles, and Sources of Capital

2.4.2   Direct Funding of Microgrid Pilot Projects

2.5   Military Microgrid Market Challenges

2.5.1   Lack of Strategic Planning for Onsite Power Generation

2.5.2   Lack of Integrated Policies on Renewables and Resiliency

2.5.3   Unique Contracting Hurdles for Determining Cost-Effective Microgrids

2.5.3.1    Case Study on Financing: Camp Pendleton Microgrids

2.6   Primary Military Microgrid Segments

2.6.1   Stationary Base Microgrids

2.6.1.1    Case Study: Net Zero Energy Marine Corps Logistics Base

2.6.2   FOB Microgrids

2.6.3   Tactical Mobile Microgrids and Nanogrids

3. Key Industry Players

3.1   Vendor Landscape Overview

3.1.1   Ameresco

3.1.2   Burns & McDonnell

3.1.3   CleanSpark

3.1.4   GE

3.1.5   Honeywell

3.1.6   Go Electric

3.1.7   LexTM3

3.1.8   Lockheed Martin

3.1.9   Schneider Electric

3.1.10 Siemens

4. Market Forecasts

4.1   Military Microgrid Market Overview

4.2   Is There a Global Market for Military Microgrids?

4.3   Methodology

4.3.1   Three Scenarios: Conservative, Base, and Aggressive

4.4   Stationary Bases

4.4.1   Air Force

4.4.2   Army

4.4.3   Marines

4.4.4   Navy

4.4.5   National Guard and Other Related Facilities

4.4.6   Conservative and Aggressive Scenarios for Stationary Bases

4.5   Forward Operating Bases

4.5.1   Three Scenarios: Conservative, Base, and Aggressive

4.6   Tactical Mobile Microgrids/Nanogrids

4.6.1   Three Scenarios: Conservative, Base, and Aggressive

4.7   Cumulative DOD Microgrid Capacity and Implementation Spending

4.8   Conclusions and Recommendations

5. Acronym and Abbreviation List
6. Table of Contents
7. Table of Charts and Figures
8. Scope of Study, Sources and Methodology, Notes

List of Charts and Figures

  • Microgrid Deployment Tracker Data: US DOD Branch Grid-Tied vs. Remote Projects: 2Q 2017
  • Microgrid Deployment Tracker Data: US DOD Branch Grid-Tied vs. Remote Capacity: 2Q 2017
  • Annual Stationary Base Military Microgrids Capacity and Implementation Spending by Military Branch, Base Scenario, US DOD: 2017-2026
  • Annual Stationary Base Military Microgrids Capacity by Scenario, US DOD: 2017-2026
  • Annual Stationary Base Military Microgrids Implementation Spending by Scenario, US DOD: 2017-2026
  • Annual FOB Military Microgrids Capacity by Scenario, US DOD: 2017-2026
  • Annual FOB Military Microgrids Implementation Spending by Scenario, US DOD: 2017-2026
  • Annual Tactical Mobile Microgrids/Nanogrids Capacity by Scenario, US DOD: 2017-2026
  • Annual Tactical Mobile Microgrids/Nanogrids Implementation Spending by Scenario, US DOD: 2017-2026
  • Cumulative Stationary Base Military Microgrids Capacity and Implementation Spending, Base Scenario, US DOD: 2017-2026
  • Energy Resources Supporting US Domestic Military Base Operations in 2016
  • US Utility Power Outage Trends: 2000-2016
  • Power Outages on US Domestic Stationary Military Bases, 2016
  • Deaths by Terrorist Target Type, 2015
  • Cyber Incidents Targeting Critical Infrastructure: 2012-2015
  • Annual Net Cost of Protection ($/kW of Critical Load)
  • Camp Pendleton Fractal Microgrid

List of Tables

  • Annual Stationary Base Military Microgrids Capacity by Military Branch, Base Scenario, US DOD: 2017-2026
  • Annual Stationary Base Military Microgrids Implementation Spending by Military Branch, Base Scenario, US DOD: 2017-2026
  • Annual Stationary Base Military Microgrids Capacity by Military Branch, Conservative Scenario, US DOD: 2017-2026
  • Annual Stationary Base Military Microgrids Implementation Spending by Military Branch, Conservative Scenario, US DOD: 2017-2026
  • Annual Stationary Base Military Microgrids Capacity by Military Branch, Aggressive Scenario, US DOD: 2017-2026
  • Annual Stationary Base Military Microgrids Implementation Spending by Military Branch, Aggressive Scenario, US DOD: 2017-2026
  • Annual FOB Military Microgrids Capacity by Scenario, US DOD: 2017-2026
  • Annual FOB Military Microgrids Implementation Spending by Scenario, US DOD: 2017-2026
  • Annual Tactical Mobile Microgrids/Nanogrids Capacity by Scenario, US DOD: 2017-2026
  • Annual Tactical Mobile Microgrids/Nanogrids Implementation Spending by Scenario, US DOD: 2017-2026
  • Cumulative Stationary Base Military Microgrids Capacity by Military Branch, Base Scenario, US DOD: 2017-2026
  • Cumulative Stationary Base Military Microgrids Implementation Spending by Military Branch, Base Scenario, US DOD: 2017-2026
  • Top Four US Military Energy Initiatives
  • DOD Fixed Stationary Base Microgrid SWOT Analysis
  • FOB Military Microgrids SWOT Analysis
  • Tactical Mobile Microgrid and Nanogrid SWOT Analysis

 


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