Driven by utility risk mitigation and rural electrification efforts, community microgrids are poised for 18.8% annual growth worldwide
A new report from Guidehouse Research explores the growing global market for community microgrids and their increasing role in supporting energy resilience and access in remote or vulnerable areas.
For communities where access to reliable electricity is limited community microgrids can combine local energy generation, storage, and control to deliver resilient power, with a carbon footprint that can be lower than a diesel solution or traditional grid infrastructure. According to the report, annual community microgrid capacity additions are expected to grow from 304 MW in 2025 to 1.4 GW by 2034, representing a compound annual growth rate (CAGR) of 18.8%.
“Community microgrids allow distribution lines to be de-energised during high-risk periods without interrupting customer energy service,” says Grant Samms, a research analyst with Guidehouse. “For countries with 100% electrification goals, microgrids are a pathway to electrifying remote villages that may never have had access before.”
The largest market driver today in overall capacity growth is utilities adopting microgrids in North America to reduce their overall financial and legal risks in the face of ageing infrastructure and wildfire liability. In North America, Asia-Pacific, and the Middle East & Africa rgions, electrification of rural and remote communities is another substantial driver of growth, with funding being made available from national clean energy legislation, 100% electrification programmes, and international development banks. Regulatory status and structure continue to be the largest barriers to community microgrid adoption, according to the report.
The report, ‘Community Microgrids’, examines four key generation sources – solar PV, wind, micro hydro, and fossil fuel backup – alongside storage technologies and advanced microgrid control systems. It focuses on how community microgrids improve energy reliability through customised, localised power systems. An executive summary of the report is available for free download on the Guidehouse Research website.
