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Oregon legislature passes bill to pave way for community owned microgrids

  • July 03, 2025
The Oregon State Legislature has overwhelmingly passed a strategy to establish a national first regulatory framework for microgrid construction, making the state a leader in energy resilience.

Microgrid is a localized, self-sufficient energy system designed to operate independently of large power grids (known as the "islanding effect") or in coordination with them. This allows the system to continue supplying power even during power outages. Microgrids can also fill capacity shortages during peak demand periods by supplying power to the grid, benefiting not only local communities but also the entire region.

There are currently no community owned or operated microgrids in Oregon, and this legislation (HB 2065 and HB 2066) will enable communities to plan, build, own, and evaluate local microgrids and connect them to the main grid. Microgrids can use multiple power sources, but typically rely on local clean energy sources such as solar energy, energy storage, micro hydro power, biomass energy, or wind energy. This is unique in the United States, as most microgrids are currently owned by utility companies, governments, or private enterprises.

When we explore how to improve the resilience of the power grid - in response to natural and other disasters - microgrids will play a critical role. If we really want to establish community owned resilience at the community level, we must address this issue, and [HB 2066] will require the Oregon State Public Utilities Commission to do so, "said Congressman Mark Owens of the 60th district.

The functions of HB 2065 and HB 2066:

● Request the Oregon State Public Utilities Commission to develop a roadmap and regulatory framework for the construction, ownership, and evaluation of microgrids in Oregon
● Allowing communities to hire third-party experts for grid interconnection research will reduce delays in building microgrids and small-scale renewable energy
● Improve clean energy deployment, power system reliability, and grid modernization
● Improve rural energy independence, power services, economic development, and the ability to cope with power outages
● Reduce rural energy costs during the period of soaring electricity prices

● Reduce the pressure of building expensive transmission infrastructure

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