Guidehouse Research Estimates Community Microgrid Capacity Additions to Reach 1.4 GW by 2034

Driven by utility risk mitigation and rural electrification efforts, community microgrids are poised for 18.8% annual growth worldwide

BOULDER, Colo., Aug. 20, 2025 /PRNewswire/ -- 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—whether due to geography, infrastructure gaps, or climate—community microgrids offer a flexible, cost-effective solution. These systems combine local energy generation, storage, and control to deliver resilient power, often with a lower carbon footprint than diesel or traditional grid infrastructure. According to a new report from Guidehouse Research, annual community microgrid capacity additions are expected to grow from 304 megawatts (MW) in 2025 to 1.4 gigawatts (GW) by 2034, representing a compound annual growth rate (CAGR) of 18.8%.

"Community microgrids allow distribution lines to be de-energized during high-risk periods without interrupting customer energy service," says Grant Samms, research analyst with Guidehouse Research. "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 aging infrastructure and wildfire liability. In North America, Asia-Pacific, and the Middle East & Africa, electrification of rural and remote communities is another substantial driver of growth, with funding being made available from national clean energy bills, 100% electrification programs, 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 customized, localized power systems. An executive summary of the report is available for free download on the Guidehouse Research website.

About Guidehouse Research
Guidehouse Research, the dedicated market intelligence arm of Guidehouse, provides research, data, and benchmarking services for today's rapidly changing and highly regulated industries. Our insights are built on in-depth analysis of global clean technology markets. The team's research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with a deep examination of technology trends, to provide a comprehensive view of emerging resilient infrastructure systems. Additional information about Guidehouse Research can be found at guidehouseresearch.com.

About Guidehouse
Guidehouse is a global AI-led professional services firm delivering advisory, technology, and managed services to the commercial and government sectors. With an integrated business technology approach, Guidehouse drives efficiency and resilience in the healthcare, financial services, energy, infrastructure, and national security markets. Built to help clients across industries outwit complexity, the firm brings together approximately 18,000 professionals to achieve lasting impact and shape a meaningful future. guidehouse.com

* The information contained in this press release concerning the report, Community Microgrids, is a summary and reflects the current expectations of Guidehouse Research based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report's conclusions and the methodologies used to create the report. Neither Guidehouse Research nor Guidehouse undertakes any obligation to update any of the information contained in this press release or the report.

For more information, contact:

Cecile Fradkin for Guidehouse Research
+1.646.941.9139
[email protected] 

SOURCE Guidehouse Research