Oregon Department of Energy’s 2024 biennial report flags rising peak demand, energy costs and planning needs

Co-chair Frederick and Co-chair Levy convened the Joint Ways and Means Subcommittee on Natural Resources on Jan. 30, 2025, to receive an informational briefing from the Oregon Department of Energy on its 2024 Biennial Energy Report.

Janine Benner, director of the Oregon Department of Energy, told the subcommittee the report compiles statewide energy data, analysis and targeted briefs intended to inform legislative and public discussion as Oregon plans for a transition in its energy system. “My name is Janine Benner. I’m the director of the Oregon Department of Energy, and I’m so pleased to be here this afternoon to talk about our Biennial Energy Report,” Benner said.

The report, required by the Legislature in 2017, is published every two years to provide an accessible set of facts and analysis for policymakers, utilities and the public. The department described the 2024 edition as a mix of core data sections (“energy by the numbers,” resource and technology reviews, an Energy 101 primer) and topical briefs on items the state is actively considering, including transmission options, energy security and a forthcoming state energy strategy.

Key findings and numbers

The report summarizes long-term trends and recent changes in energy use and costs in Oregon. Notable figures presented during the hearing included: - Total statewide energy spending of $19.5 billion in 2022, an increase of about $7.5 billion since 2020; petroleum products accounted for roughly $12.7 billion of that total. - Transportation fuels remained the largest spending category despite representing about 36.7 percent of statewide energy consumption. - The number of highly or severely energy-burdened households rose by more than 100,000 between 2020 and 2022, to 477,540 households (about 28.5 percent of Oregon households). - Electric vehicle registrations in July 2024 topped 100,000 and represented nearly 3 percent of light-duty vehicle registrations for the year.

The department noted Oregon’s electricity supply remains regionally diverse: hydropower continues to provide the largest share of electricity serving Oregonians, with natural gas, imports (including coal-fired generation from outside the state) and growing shares of wind and solar also contributing to the mix. The report explains a 2022 methodology change that added a category for market purchases when utilities buy energy shortly before use.

Peak demand, causes and reliability concerns

A substantial portion of the committee’s questioning focused on growing peak electricity demand, especially in Portland General Electric’s (PGE) service territory. ODOE staff summarized regional and utility forecasts showing sharp projected increases in peak load over the next decade and identified several drivers: increased electrification (heat pumps and air conditioning), growth of large industrial and data center loads, and more frequent extreme-heat events that push many customers to use cooling simultaneously.

Stephanie Cruz, a facilities engineer at the Oregon Department of Energy, explained how the charts represent concurrent use rather than simply more devices: “So it’s not necessarily reflecting a bunch of additional, energy using equipment, but it’s representing a concurrent use of energy,” Cruz said, adding that the system is sized to meet those peaks and that concurrent use is an increasing challenge.

Committee members asked whether rising peaks could lead to rolling outages. ODOE staff said utilities and regional planners are watching the forecasts and are taking steps to avoid reliability issues, including adding battery storage, pursuing demand-response programs, continuing energy-efficiency efforts and coordinating regional market resources. The department cited planned utility-scale battery projects in PGE’s territory and pilot programs for smart thermostats and smart EV chargers as examples of mitigation options.

Emerging resources and technology reviews

The report includes technology reviews and policy briefs on several emerging or debated energy resources. Presenters highlighted key points in the 2024 edition: - Hydrogen hub: The Bipartisan Infrastructure Law and the Inflation Reduction Act have funded a Pacific Northwest hydrogen hub; the Department of Energy awarded up to $1 billion to build regional capacity, including proposals to produce hydrogen at the former Boardman coal plant site for medium- and heavy-duty transport. Jessica Rikers, technology and policy manager at ODOE, said, “Clean hydrogen can serve as a 0 emission fuel for a wide range of end uses, including many that are traditionally very difficult to decarbonize.” - Agrivoltaics: The report surveys agrivoltaic systems — solar installations designed to coexist with some agricultural uses — and notes Oregon State University is studying their potential benefits and operational challenges for farmers. - Small modular reactors and nuclear: The department summarized status and limits: while advanced nuclear and small modular reactors attract investment, these technologies are still maturing. ODOE noted NuScale (an Oregon-based company) holds an NRC standard design certificate and that regional developments in Washington could produce electricity available to Oregon utilities; presenters flagged radioactive waste and cost/schedule uncertainty as outstanding issues. - Biomass and biofuels: The report and presenters said Oregon continues to track biomass production and biofuels growth, particularly for hard-to-decarbonize transportation uses. ODOE said past report editions included more in-depth biomass reviews and offered to provide those sections on request.

Waste, decommissioning and recycling of renewable equipment

Several legislators asked about end-of-life management for solar panels and wind equipment. ODOE noted the Energy Facility Siting Council (EFSC) places decommissioning requirements in site certificates and that recycling firms have engaged developers. Director Benner said the department is tracking national developments and pledged the 2026 Biennial Energy Report would include analysis on recycling and decommissioning practices.

Planning, strategy and next steps

The department summarized two ongoing, larger projects referenced in the report: the Oregon Energy Security Plan (submitted Sept. 30 to the U.S. DOE and Oregon Legislature) and the state energy strategy directed by the Legislature under House Bill 3630. ODOE staff said they are modeling pathways to meet Oregon’s goals and will hold stakeholder conversations in spring; the agency expected to present preliminary recommendations to the Legislature in the fall. Benner noted the department would present model findings the following day at the Oregon Mineral and Science Industry Museum.

No formal committee votes or directives were recorded at the hearing; the session was informational. The subcommittee chair closed the hearing and announced the next meeting was scheduled for Monday, Feb. 3, 2025, which would include a public hearing on Senate Bill 5528, the budget bill for the Department of Land Conservation and Development.

Context and limitations

Presenters indicated some material in the report was descriptive and aimed at a broad audience; they also said specific technical details might require follow-up because multiple authors contributed to the report. When committee members asked for utility-specific forecasts or details of planned projects, ODOE staff advised members to consult utilities’ integrated resource plans or the Oregon Public Utility Commission for regulatory questions beyond ODOE’s data-and-analysis role.