Combined heat and power (CHP) systems—which generate electricity and useful thermal energy in a single unit—were the original microgrids. CHP has been operating as an efficient, simple form of self-sustaining microgrid for more than a century. Boasting double the efficiency of typical grid-supplied power, the opportunities for modern CHP’s positive impact are vast. Yet, growth has been stagnant and most applications remain focused on large systems in niche markets. Demand for CHP in microgrids is subject to a complex mix of drivers and hurdles. CHP is sought after for boosting energy resilience, cutting emissions compared to grid power, and lowering utility bills. On the other hand, project complexity, interconnection challenges, and concerns about long-term emissions on a lower carbon grid are some of the hurdles faced. Industry players that can navigate these shifting forces will be rewarded as demand continues to grow. According to Navigant Research, global demand for CHP prime mover equipment in microgrids is expected to grow from 655 MW in 2017 to 1,906 MW in 2026. This Navigant Research report examines the global market for CHP in microgrids, aggregating data on five microgrid segments across five regions. The study provides an analysis of the global microgrid market in terms of total annual capacity and revenue attached to five types of CHP prime mover equipment: combustion turbines, steam turbines, microturbines, natural gas reciprocating gensets, and fuel cells. Global market forecasts for capacity and revenue, broken out by segment, technology, and region, extend through 2026. The report also analyzes the key market and technology issues related to CHP in microgrids.