Oregon Races to Overhaul Grid, Unlock Stalled Green Energy Projects
Oregon is embarking on an ambitious effort to modernize its electrical grid, spurred by mounting pressure to accelerate renewable energy development and avoid potential power outages. For months, the state’s clean energy ambitions were hampered by an aging infrastructure unable to handle increased capacity from wind and solar sources, but recent actions by Governor Tina Kotek signal a dramatic shift in priorities.
For years, Oregon and its neighbor Washington have lagged behind other states in renewable energy growth despite ambitious goals, largely due to bottlenecks in the transmission of power. A series of investigative reports by Oregon Public Broadcasting and ProPublica exposed bureaucratic hurdles and a lack of investment in grid upgrades as key contributors to the problem. These reports identified significant barriers within both federal and state agencies that stalled crucial improvements.
“This was the year where you’ve seen all these factors coming together — we know that our outdated grid is choking our ability to grow across the state, and we’re already paying more for electricity,” Governor Kotek stated in a recent interview.
The governor’s acknowledgment of the issue, and the role of investigative journalism in bringing it to light, marks a turning point. Previously, bills aimed at addressing the transmission challenges repeatedly failed to gain traction in the Oregon Legislature. However, the increased scrutiny prompted Kotek to issue two executive orders in October and more recently, mandating state agencies to expedite renewable energy development through measures like fast-tracked permitting and direct funding for new transmission lines.
These efforts are gaining momentum with a proposal from the state’s energy department to establish a state entity dedicated to financing, planning, and constructing transmission lines. A lawmaker who previously saw a similar bill fail is now optimistic about its prospects, with the governor’s office actively collaborating on the revised legislation.
The shift in focus extends beyond Oregon, with Washington state also increasing its attention to electrical transmission capacity. This comes at a time when federal policies under President Donald Trump have presented new obstacles to renewable energy, including the removal of tax credits, blocked wind permits, and personnel changes within key regulatory agencies.
According to data released in May by OPB and ProPublica, Oregon ranked 47th in renewable energy growth over the past decade, while Washington fared even worse at 50th. An analysis revealed that Northwest wind and solar farms face the most significant challenges in the country when attempting to connect to the power grid, a process largely controlled by the Bonneville Power Administration (BPA).
Of the 469 large renewable energy projects seeking access to BPA’s system since 2015, only one has been successfully connected. The vast majority are either abandoned or remain in limbo, awaiting necessary upgrades to power lines and substations. Northwest utilities are increasingly concerned about potential rolling blackouts within the next decade if transmission capacity isn’t expanded to meet growing energy demands, particularly from data centers powering artificial intelligence.
The state’s 2021 commitment to eliminate fossil fuels in electrical generation by 2040 was made without adequately addressing the transmission infrastructure needed to support the transition. Furthermore, Oregon’s lengthy and complex energy project evaluation process, rooted in regulations from the 1970s antinuclear movement, has contributed to significant delays. Opponents of transmission and wind projects have frequently used the permitting system to obstruct progress.
“It has motivated policymakers and advocates alike to try to find solutions to get Oregon and Washington unstuck and is recruiting new people to the effort,” said Emily Moore, director of climate and energy for the Seattle-based think tank Sightline Institute, highlighting the impact of the recent reporting.
Governor Kotek has directed state agencies to identify and overcome obstacles to clean energy development, and the energy department is exploring models from states like Colorado and New Mexico, which have successfully established state authorities to plan and finance transmission projects. A similar recommendation emerged from a December report by a working group in Washington state, emphasizing the need for a dedicated state entity to increase transmission capacity.
The governor also ordered the department and Oregon utilities regulators to identify and streamline permitting for transmission lines along designated routes, and to secure financial support for projects that benefit the public interest. The protracted permitting process for the Boardman to Hemingway transmission line in Eastern Oregon – stalled for nearly two decades – served as a stark example of the state’s shortcomings, and was specifically cited by Kotek as a “red flag.”
“We have to get out of our own way,” she asserted.
The governor’s actions have garnered praise from a diverse range of organizations, including clean energy advocates and business groups. “It makes our energy system stronger and more reliable, enhancing grid resilience, expanding storage and bolstering transmission to keep electricity affordable and dependable for every Oregonian,” stated Nora Apter, Oregon director for Climate Solutions.
Lawmakers are now working towards enacting a state transmission financing authority during the 2027 legislative session. Representative Mark Gamba, whose previous attempt to create such an agency failed, expressed confidence in the new effort, citing the governor’s active involvement. “Her leaning in the way she has is what we needed,” he said, adding that he is receiving support from across the political spectrum, recognizing the economic development potential of expanded transmission capacity.
