Oregon passes landmark microgrid legislation
Oregon is set to lead the country in microgrid interconnections after Oregon Governor Tina Kotek signed House Bills 2065 and 2066 into law this month – two pieces of legislation aimed at expediting microgrid development as part of the broader power system.
“Microgrid technology is an indispensable way to make power outages less risky, shorter lived, and could even save lives when the worst happens, whether it’s wildfires or the Cascadia Earthquake,” Gov. Kotek said. “Red tape should never get in the way of technology that could mean the difference between fast, efficient electricity restoration and delays and risk when power outages strike. These new laws will help bring more microgrids online faster and deliver cost savings to consumers in every part of the state.”
There are currently no community-owned or operated microgrids in Oregon. These new laws will make it possible for communities to plan, build, own, and value local microgrids and connect them to the larger grid. This development is unique in the nation, as most microgrids are currently owned by utilities, governments, or private businesses.
In promoting the new legislation, Kotek’s office summed up the utility of microgrids as “local, self-contained energy systems designed to operate independently from the larger power grid (known as ‘islanding’) or in coordination with it. This allows systems to continue delivering power even during a grid disruption. Microgrids can also fill capacity shortages during peak demand times by feeding power to the broader electricity grid, which benefits not only the local community but the region as a whole.”
Hear, hear.
HB 2066 | This directs the Oregon Public Utility Commission to devise a framework for the ownership, deployment, and use of microgrids within electric companies’ service territories by the end of January 2027. Goals of HB 2066 include an accessible application processes and compensation frameworks that appropriately value microgrids for both the community / business and utilities.
HB 2065 | This aims to reduce bottlenecks with clear guidelines for microgrid interconnection applications.
“Thanks to strong community engagement and bipartisan support, Oregon has passed the most ambitious microgrid legislation in the nation,” said Dylan Kruse, president of Sustainable Northwest. “These bills pave the way for clean energy innovation to support community resilience, energy independence, and cost savings across the state.”
