Frequent wildfires and other severe weather events in Oregon often leave communities at the end of power lines without electricity. Now, thanks to two new state laws, tribes, municipalities, and third-party developers looking to set up and own microgrids in rural areas will soon have the legal and regulatory framework to do so.
Governor Tina Kotek recently signed House Bill 2065, which requires public utilities to provide groups needing microgrids in their area with the required information, and House Bill 2066, which calls on the state’s Public Utility Commission to “establish a regulatory framework for allowing the ownership, deployment, and use of microgrids and community microgrids within the service territories of electric companies,” into law. Both are the first of their kind in the country.
“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,” Kotek said in a statement. “These new laws will help bring more microgrids online faster and deliver cost savings to consumers in every part of the state.”
Prior to these laws, entities hoping to build and own their own microgrids faced legal hurdles and bureaucratic bottlenecks when they tried to set them up, Sustainable Northwest President Dylan Kruse told Tech Brew. Sustainable Northwest is a clean tech and regenerative farming nonprofit that helped draft both bills and will help create the regulatory framework.
“We’re seeing increased demand on the grid and decreasing reliability. A lot of communities, particularly in these rural and tribal communities that are out at the end of the line with less reliable infrastructure, are really feeling the brunt of those changes,” Kruse said. “This is about creating another option, another tool in the toolbox. Because it’s going to take an all-of-the-above strategy.”
Kruse said that the laws are “technology-agnostic,” meaning future microgrids can run on any source of energy, but communities looking to install the technology that Sustainable Northwest has talked with are interested in renewables, including solar and hydro power, and backup power using battery storage.
“It’s an important step forward in the evolution of the energy space,” Kruse said of the laws. “And it’s showing state leadership and showing better local leadership for people and rate payers to get the best value out of what they’re ultimately paying for.”
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