Governor Kotek Signs Landmark Microgrid Legislation into State Law

Salem, OR — Last Thursday, Governor Tina Kotek signed House Bills 2065 and 2066 into law, two pieces of landmark legislation which aim to increase and expedite access to microgrids across urban, suburban, and rural Oregon communities.

“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,” Governor 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."

“Micro grids provide a real local connection with the energy needed by Oregon communities and a way to distribute it,” Senator Lew Frederick (D-Portland) said.

“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."

Microgrids are 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.

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. Microgrids can operate with a wide variety of power sources, but more often they make use of local clean energy supplies such as solar, storage, microhydro, biomass, or wind. This development is unique in the nation, as most microgrids are currently owned by utilities, governments, or private businesses.

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