Microgrid Policy Regulation in California and Oregon – a Comparative State Review

Abstract

Growing attention on grid decarbonization, decentralization, energy equity, and resiliency against extreme weather have propelled microgrids to the forefront as a potential solution. Despite their growing popularity, a clear governance and regulatory framework is lacking. This study explores how policymaking and regulatory structures are evolving to accommodate microgrids. Utilizing a qualitative analysis of 250 policy documents and 48 semi-structured interviews with relevant policy actors, an early (California) and a later (Oregon) adopter of microgrid policies is explored by leveraging a three-dimensional conceptual framework. Findings show that California has more instruments at play to support microgrids than Oregon due to more urgent issues to deal with including higher power prices, extreme weather events, more focus on decarbonization, utility distrust and community push towards energy equity. Oregon started out later and is focusing mostly on identifying local needs, decarbonizing, and indirectly supporting microgrids. Both states have similarities but their policy instruments to support microgrids are different. California is initiating multiple activity streams including debating standby charges, working on multi-property microgrid tariffs, resilience valuation, and designing a standardized microgrid tariff structure. Oregon, on the other hand, is focusing more on supporting microgrids with renewable projects while exploring other policy instruments including resilience planning.

Keywords: microgrids, Decentralization, Decarbonization, Distributed Energy Resources, Comparative State Analysis, Renewable Deployment