Solid-state transformers emerge as a key grid technology, while data centers and microgrids see major developments.
Solid-State Transformers: A New Grid Backbone Emerges
SSTs are poised to revolutionize grid connectivity, microgrids, and EV charging.
Solid-state transformers are appearing in multiple applications, from offshore wind integration to microgrid islanding and EV charging infrastructure. Despite challenges in recycling and cybersecurity, their potential for grid modernization is significant.
- Solid-State Transformer End-of-Life: Why Recycling MPPF Capacitors and SiC Devices Is Harder Than Recycling Iron-Core Transformers
- Grid-Forming Solid-State Transformers and the Virtual Synchronous Machine Control Strategy
- Solid-State Transformers for Direct Offshore Wind Turbine Grid Connection: 3.3 kV SiC MOSFETs, 98% Efficiency, and Series-DC Collection
Energy Storage Market Sees Financing Surge and Strategic Acquisitions
Significant investment and M&A activity underscore the growing importance of energy storage.
The energy storage sector is attracting substantial financing and seeing key acquisitions, despite some revenue declines for major players. New reports highlight competitive pricing for solar-plus-storage and ongoing debates about market inclusion.
- IRENA Report Puts Firm Solar-Plus-Storage at $54-74 per MWh, Reframing the Renewables-vs-Gas Procurement Debate
- Orsted Buys 150 MW Salzburg BESS in Michigan from ESA Solar
- AccelerateEU Toolbox Criticized for Energy Storage Omission
Data Centers Expand Power Needs Amidst Grid Integration Challenges
Data center growth continues, but grid integration and power sourcing remain critical issues.
Major data center projects are approved, and energy management revenues are up, indicating continued expansion. However, challenges like Oregon's new regulations and the shift to onsite generation highlight the growing strain on grid integration.
- Box Elder County Approves 9 GW Wonder Valley Data Center
- Duke Energy Adds 2.7 GW of Q1 Data Center Contracts
- Schneider Electric Energy Management Revenue Up 12.8%
Federal Contracts Fuel Microgrid and Energy Resilience Initiatives
US government spending is driving significant growth in microgrid and energy resilience projects.
The US Army Corps of Engineers is awarding substantial contracts for energy resilience pipelines, with Parsons and Overview Energy securing major deals. This federal push is a key driver for microgrid development and onsite generation.
- US Army Corps of Engineers Awards $2 Billion 10-Year Pipeline
- Parsons Wins Army Corps $2 Billion Energy Resilience Contract
- Overview Energy Wins Air Force Contract
EV Charging Infrastructure Scales Up with Megawatt Solutions
The EV sector is rapidly advancing with larger orders and megawatt-scale charging infrastructure.
Major fleet orders for Tesla Semis are being placed, signaling a ramp-up in electric freight. Concurrently, megawatt-scale charging infrastructure is emerging as a critical threshold for the EV market.
- PG&E Residential Rates Could Drop 4.5%
- Forum Mobility Lands 60-Truck Tesla Semi Order
- WattEV Orders 370 Tesla Semis to Launch Largest Electric Freight
Box Elder County approved a 9 GW data center, and Duke Energy added 2.7 GW of Q1 data center contracts, signaling continued utility-scale demand. Oregon, however, ordered data centers to pay 100% of their energy costs, a move that could temper future growth. Schneider Electric reported 12.8% energy management revenue growth. The broader trend shows 27% of US facilities shifting to onsite generation by 2030 amid grid challenges.
State of Data Center Power: 27% of U.S. Facilities Shift to Onsite Generation by 2030 as Grid Integration Challenges MountTesla's Q1 energy storage revenues and deployments declined, contrasting with a report showing solar-plus-storage costs at $54-74/MWh. Orsted acquired a 150 MW BESS in Michigan, while AccelerateEU faced criticism for omitting energy storage. NREL research integrates battery storage into solid-state transformers, though the AccelerateEU toolbox's omission suggests a disconnect between research and policy. Over $1.35 billion in new financing and 20+ GWh moved in the sector.
State of Battery & Energy Storage: $1.35 Billion in New Financing and 20+ GWh in MotionThe US Army Corps of Engineers awarded $2 billion in energy resilience contracts to Parsons and others, with Overview Energy also winning an Air Force contract, highlighting federal investment. Solid-state transformers are making intentional microgrid islanding a standard feature. Orlando will host the 2026 Microgrid Knowledge Conference. Federal contracts are driving a significant infrastructure push through mid-2026.
State of Microgrids & Onsite Generation: Federal Contracts Drive B+ Infrastructure Push Through Mid-2026Forum Mobility and WattEV placed significant orders for Tesla Semis, totaling 370 trucks, signaling the arrival of megawatt-scale charging infrastructure. PG&E residential rates could drop 4.5%, potentially impacting EV adoption economics. The sector is seeing megawatt-scale infrastructure and bidirectional power capabilities reaching 750 kW.
State of EV Charging: Megawatt-Scale Infrastructure Arrives as Bidirectional Power Reaches 750 kWGrid operators face an October compliance deadline as AI and EV loads push harmonic limits, indicating increasing strain on power quality. The State of Power Quality & Standards report highlights these challenges.
State of Power Quality & Standards: Grid Operators Face October Compliance Deadline as AI and EV Loads Push Harmonic LimitsNERC issued a rare Level 3 alert, underscoring grid reliability concerns. Microsoft released an open dataset, potentially aiding market analysis. The State of Grid Policy & Markets report indicates 58 GW added, with markets clearing lower and demand response rules stabilizing, suggesting a complex but evolving regulatory landscape.
State of Grid Policy & Markets: 58 GW Added as Markets Clear Lower and Demand Response Rules StabilizeSolid-state transformers remain in single-digit deployments despite emerging megawatt charging infrastructure. Recycling challenges for MPPF capacitors and SiC devices were highlighted, while grid-forming SSTs and offshore wind turbine applications show technological advancement. Cybersecurity risks associated with power electronics on the distribution grid are also a growing concern.
State of Power Electronics: Megawatt Charging Emerges as 2026 Infrastructure Threshold While Solid-State Transformers Remain Single-Digit Deployments