Macro Wins for Microgrids! | Climate Solutions

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Macro Wins for Microgrids!

August 6, 2025

Oregon Governor Signs Microgrid Legislation, Advancing Oregon’s Path to Energy Resilience

Last week, Governor Kotek signed two bills into law, HB 2065 and HB 2066, which will create a process for developing community-owned microgrids. Microgrids are a key part of Oregon’s decarbonization and energy resiliency goals. But their development has been hampered by technical and regulatory challenges. What are microgrids, why has building them been challenging, and how does this legislation help?

Microgrids are Unique Energy Systems

Microgrids are local, self-contained energy systems comprised of generating resources and battery storage. They can use many types of power, but often utilize solar panels or other local renewable resources like geothermal and micro-hydropower. Microgrids are designed to operate independently of the power grid (known as ‘islanding’), or in coordination with it. When islanding, microgrids can keep homes, hospitals, and other critical infrastructure powered. This is especially important during grid disturbances, such as wildfires, when power is shut off for public safety. Community-owned microgrids also bring economic benefits, along with resilience. Many Oregonians, particularly those living in rural areas prone to wildfires, will benefit from microgrids.

Community Microgrids Face Hurdles in Oregon

Developers of community-owned microgrids have encountered multiple challenges. They must request an interconnection to the local electric grid from the local utility. However, there are no rules yet regarding how those requests are handled. Additionally, guidelines are needed for how microgrids are operated in conjunction with utility transmission systems. And importantly, if microgrids send power back to the grid, a set cost must be established for compensating them.

HB 2065 and HB 2066 Remove Hurdles

The legislation, championed by the Making Energy Work for Rural Oregon coalition, facilitated by Sustainable Northwest and rural communities, will address these challenges. It directs the Public Utility Commission to create rules and guidelines for microgrid interconnection, operation, and compensation. Once written, we expect these clear rules will help expedite construction of more microgrids in rural areas. While the legislation takes effect in the near term, it will take a while for the PUC to develop this framework, and multiple stakeholders will be involved. We will keep you updated as we continue making progress on ensuring every community in Oregon is energy resilient.

Author Bio

Joshua Basofin

Oregon Clean Energy Program Director, Climate Solutions

Joshua works to advance clean energy policies in Oregon, including implementation of HB 2021, the state’s groundbreaking clean energy law. Joshua also works in coalitions to identify clean energy pathways for industry, seek consensus on siting and permitting of renewable energy facilities, and extend the benefits of our clean energy transition to rural parts of Oregon.

Joshua has held many roles in the environmental field. He began his career working in conservation with a focus on freshwater fisheries, marine protected areas, deserts, and wetlands. He spent several years as a sustainability advisor for businesses. Joshua also served as the first Director of Climate Action for Parliament of the World’s Religions, the oldest interfaith organization in the US. Joshua is particularly interested in the intersections within the environmental movement where coalitions of advocates, businesses, faiths, and communities can be created.

Joshua holds a BA in English and Environmental Studies and a JD with a concentration in environmental law. In his free time, Joshua enjoys backpacking, kayaking, cooking, gardening, and volunteering with organizations focused on sustainable food and access to nature.