Oregon’s Roadmap to a Clean Energy Future

This November, the Oregon Department of Energy (ODOE) unveiled the long-awaited Oregon Energy Strategy report, a roadmap towards meeting Oregon’s clean energy goals. CUB’s own Policy & Program Director, Jennifer Hill-Hart, served on the Oregon Energy Strategy Advisory Group that helped develop the report.

The roadmap comes at a critical time for Oregonians. Annual bill increases have spurred an energy affordability crisis. Climate-change-fueled weather events are becoming the new norm. And the federal government has reversed course on clean energy policy. Oregon has the opportunity to lead the way in transitioning to clean energy.

Want to learn more about ODOE’s report? Join ODOE on December 17, 2025, at 1:30 p.m. for a webinar on the new Oregon Energy Strategy. For more information, including login details, please visit this link.

Key Takeaways

ODOE’s report revealed several key takeaways for meeting climate goals.

Oregon’s electricity demand will double by 2050. In the short term, energy demand will be driven by big tech and data centers, but after 2030, electric vehicles will drive electricity demand. This shows that electrification will be both an important driver of growth and a crucial tactic for reducing overall energy demand.

We have opportunities to reduce energy use without breaking the bank. Modeling the least cost options showed that strong action on energy efficiency and electrification can reduce Oregon’s overall energy demand by 22% by 2050, even as our population and economy grow.

Inaction on addressing the energy transition is our most expensive option. One of the most important takeaways from the report is that delaying action on energy efficiency, electrification, and transmission development will lead to higher overall costs to the economy. Oregon must invest in a clean energy transition now to save customers money in the long run.

5 Key Pathways to a Clean Energy Future

After significant work and public engagement, ODOE identified five key pathways to achieve the state’s energy objectives:

1. Energy Efficiency. Lower energy use across buildings, industry, and transportation sectors to deliver the benefits to everyone. 
2. Clean Electricity. Secure reliable, affordable, and clean electricity by expanding the electricity system while planning for peak energy demand
3. Electrification. Move buildings, transportation, and industry from fossil fuels to electric equivalents while protecting reliability and affordability.
4. Low-Carbon Fuels. Advance the use of low-carbon fuels in the hardest-to-electrify uses and to maintain a reliable electric grid.
5. Resilience. Strengthen resilience across all levels of the energy system, including utilities, communities, and customers, to adapt to climate change and other risks.

To successfully reduce emissions while maintaining energy affordability, these strategies are meant to move forward together and reinforce one another.

Here’s how that could work:

Investments in energy efficiency will reduce energy demand as much as possible. This saves customers on their monthly bills by using less. We can also see savings from utilities, spending less on supplying us with energy.

Clean electricity will power a growing share of our energy system. As electricity demand grows in the coming years, our electric systems will need to grow too. We will need to invest in upgrading our transmission, generation, and distribution infrastructure.

Electrification will replace technologies reliant on fossil fuels with electric equivalents, which will increase energy demand but also support better energy efficiency.

Low-carbon fuels will be essential to providing energy in areas where electrification is not feasible.

Improving our energy system’s resilience will be necessary to better withstand climate change and other external risks, like cyber attacks.

CUB’s Response

CUB believes that the five pathways are generally on the right track to advancing Oregon’s energy policy objectives and appreciates that the report acknowledges that several factors affect access & affordability, beyond dollar amounts. Most importantly, the report acknowledges that the processes to implement Oregon’s Energy Strategy must be equitable.

Our staff still found gaps that ODOE needs to address in the long term. There needs to be a greater analysis of the impact of large load customers, like data centers, who are driving energy capacity growth in Oregon. Additionally, there needs to be a deeper dive into the systemic barriers to weatherization and energy efficiency investments in households. We must coordinate those strategies with those most intimately aware of the barriers to energy assistance.

The Cost of Inaction

Energy costs have risen exponentially over the past several years. Many customers are struggling to pay their energy bills, leading to rising disconnection rates.

Climate change is also adding additional costs for Oregon households, businesses, and the government. More frequent and longer extreme summer and winter weather are further straining electricity systems, creating higher prices during peak events.

In the coming decades, it is estimated that the average Oregonian could lose about $12,000 in income each year from the effects of greenhouse gas emissions.

Unless global emissions decline considerably, inaction on climate will commit Oregonians to increasingly higher costs as we feel the full impacts of climate change. While our state can’t reduce emissions alone, we have an opportunity to reduce emissions and provide economic opportunities with the energy transition.

We can’t afford to wait when it comes to tackling climate change. Cost of living and affordability are already major issues for Oregonians. This report makes it clear that we need to reduce emissions and transition to clean, affordable, reliable energy.

Learn more: Not Acting on Clean Energy Could Cost Oregonians

Developing the Energy Strategy

When it comes to energy policy, Oregon has led the country in regulations, programs, and laws that shift us away from fossil fuels. But until now, it’s been unclear how those various pieces fit together. Now, Oregon’s Energy Strategy Report gives clear direction for our big policy wins to work together.

How We Got Here:

• 2025 - Executive Order 25-29: State agencies to adopt and implement the recommendations of the Oregon Energy Strategy Report
• 2023 - HB 3630: Directs ODOE to develop a comprehensive state energy strategy
• 2021 - HB 2021: Emissions-reduction requirements for PGE, Pacific Power, and covered electricity service suppliers of 80% emissions reductions by 2030, 90% by 2035, 100% by 2040
• 2021 - Climate Protection Program: 90% reduction in greenhouse gas emissions from natural gas, liquid fuels, and propane by 2050
• 2020 - Executive Order 20-04: Economy-wide 80% reduction in greenhouse gas emissions by 2050

For two years, ODOE staff conducted technical analysis, public engagement, and held policy conversations. They used input from Tribes, the Energy Strategy’s Advisory and Working Groups, and the public to create different energy pathways the state could take to achieve its energy policy objectives by 2050.

Community Engagement and Equity and Justice Framework

The report was informed by community engagement processes. ODOE used a three-phase approach to engage the community, gather feedback, and incorporate community input into the final report.

ODOE reached out to nine federally recognized Tribes in Oregon throughout the engagement process. Their staff heard concerns about how existing energy systems overlook tribal sovereignty, cultural knowledge, and priorities. They also heard support for incentive programs that can help tribal members shift to clean energy and energy-efficient opportunities.

The final report recommends approaches to promote meaningful engagement and equity when crafting energy policy. These approaches include community input on decision-making and policy, as well as designing programs that work for environmental justice communities. These programs range from incentives for energy efficiency to workforce development.

Check out the full report for the complete engagement recommendation list!

Implementing Oregon’s Clean Energy Strategy

The Energy Strategy includes 42 near-term actions. In the report, ODOE states that it will collaborate with partner agencies, the Governor’s office, and other interested parties to advance these actions and determine the next steps.

The list includes actions focused on:

• Electricity System Reliability and Resilience
• Protecting Affordability and Access to Clean Technologies
• Advancement with Minimal Additional State Budget Allocation
• Legislative and Policy Actions

Check out the full report for the complete actions list!

Oregon Governor Tina Kotek is helping advance the clean energy transition. On November 19th, she issued Executive Order 25-29. This order directed state agencies to adopt and implement the recommendations in the Oregon Energy Strategy report. With the Governor’s support, Oregon is well-positioned to increase its response to reducing carbon emissions while enhancing grid security and energy affordability.

CUB Will Continue to Work on the State Energy Strategy

CUB appreciates that the Energy Strategy acknowledges that we must strengthen resilience across our energy system to mitigate the impacts of climate change, including wildfire. CUB staff will continue to work with the Oregon Department of Energy to reach our state’s climate goals while ensuring that energy affordability is always prioritized.

Stay Up to Date on Oregon Utility Issues

CUB will continue to advocate for people in Oregon on major utility issues. Sign up for the CUB email list for the latest updates, action alerts, and news on policies that affect the utilities your home relies on.

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