Icon of a damaged electrical plug with a lightning bolt through it, representing electrical hazard or power outage.

Electrification

Increase electrification of end uses across transportation, buildings, and industry, while safeguarding reliability, promoting affordability, and maximizing opportunities to use load flexibility as a resource.

Electrification is a powerful energy efficiency and greenhouse gas reduction tool.

Electrification can also deliver significant GHG reductions both today and in the coming decades, since Oregon’s electric grid already produces fewer emissions than many fuels and it will become even cleaner as more renewable energy comes online. Delaying electrification in transportation and buildings leads to significantly higher economy-wide decarbonization costs. However, electrifying today does not always lead to lower energy bills for households and businesses, particularly when it comes to installing heat pumps.

Incentives can help overcome the cost differences, as well as education on the value of heat pumps in providing cooling. Affordability for low- to mid- income households and environmental justice communities, including renters, especially those in publicly supported or naturally occurring low-income multi-family housing, must be a key consideration when designing and implementing electrification measures.

While the modeling demonstrates the benefits of early electrification, public engagement and additional analysis underscore the need for a carefully managed transition – one that accounts for all key considerations, including ambitious decarbonization goals, grid reliability, upfront and ongoing affordability, equitable access, and additional benefits like cleaner air and improved cooling in homes. The concept of “strategic electrification,” elaborated later in this strategy, is an approach to advancing electrification while working to account for these other crucial considerations.

Widespread electrification will require a significant expansion of the electricity sector. At the same time, electrification technologies can strengthen the grid by providing load flexibility. By shifting demand away from peak periods, load flexibility can lower costs, reduce environmental impacts, minimize the need for new power plants, and better integrate variable renewable generation. Realizing this potential depends on customers – from large businesses to households to EV drivers – contributing through batteries, water heaters, and other flexible electric uses.

In the energy strategy modeling Reference Scenario, which represented the least-cost scenario modeled, electrifying on-road transportation alone reduced economy-wide energy demand by 27 percent thanks to the significantly higher efficiency of electric motors compared to internal combustion engines. In the buildings sector, electrification is the largest driver of household energy savings and – when paired with complementary measures like weatherization and efficient lighting – can reduce energy consumption in households by 47 percent.

Electrification Policies

Each policy has a short-hand reference shown in italics used throughout the strategy.

3a

Advance and expand efforts to electrify transportation, with a focus on removing barriers to ensure the state meets its zero-emission vehicle goals. (Electrify transportation)

3b

Facilitate and accelerate the interconnection of EV charging infrastructure and related distribution system upgrades to enable faster deployment, lower costs and complexity, and improve grid readiness. (Distribution system readiness for EVs)

3c

Promote strategic electrification across the residential, commercial, and industrial sectors to align policies and investment to deliver affordable, reliable, and clean energy. (Strategic electrification)

Load flexibility refers to the ability to shift electricity use to times when electricity is abundant and cheap. For households, this can include charging an electric vehicle, running a home battery, or preheating water during off-peak hours. These are things anyone with the necessary equipment can do, and utilities can encourage this behavior by offering lower rates at these times and supporting automation tools that make shifting energy use seamless – such as programmable thermostats or smart EV chargers. Commercial and industrial customers can also shift their consumption by adjusting operating schedules or activating backup energy systems to reduce demand during peak periods.