Illinois lawmakers propose 15 GW energy storage target

Legislation proposed in the U.S. state of Illinois aims to establish an energy-storage mandate and implement a virtual power plant (VPP) program to help optimize the power grid and flatten electricity peak and low-demand periods.

Provisions made in proposed bills HB 3758 and SB 2497 would direct the Illinois Power Agency to procure 15 GW of energy storage projects by 2035, nearly twice the sum proposed in a similar bill last year and equal to what is required in California, which uses twice as much electricity as Illinois.

The bills were introduced by Democratic State Senator Bill Cunningham, who represents Chicago, and Republicans Barbara Hernandez and Marcus Evans, and are backed by trade bodies the Solar Energy Industries Association (SEIA) and the American Clean Power Association.

“With energy prices skyrocketing across the country and leaders in Washington opening the floodgates for fossil fuels, our bill makes it clear that Illinois will remain at the forefront of lowering energy costs while investing in clean energy,” said Cunningham at a press conference.

The state senator said the bills would address Illinois’ “energy crisis, caused by rapid inflation and steep tariffs on many goods used to build and maintain energy infrastructure.” The bills would also address, and rectify significant delays in connecting clean energy projects to regional energy grids, he added.

By eliminating the need to import energy from other states, the bills could lower electricity costs for consumers. State trade association Solar Power Illinois said 15 GW of energy storage would shave $2.4 billion off energy bills over the next 20 years, amounting to a $4.37 monthly saving for customers of the Ameren utility and $2.81 per month less for Commonwealth Edison (ComEd) bill payers.

A 2024 study by Mark Pruitt, former director of the Illinois Power Agency, found deploying 15 GW of storage would prevent more than $7 billion in blackout-related expenses and generate more than $16 billion in total economic activity. The study also found it would create approximately 115,000 jobs in the state, which has one of the highest unemployment rates in the country.

Illinois, the sixth-largest US state for energy consumption, is set to see electricity demand outpace supply within a few years.

The proposed energy storage bills would reduce emissions by 50 million tons by 2045, the equivalent of removing 10.5 million cars off the road for a year, according to Solar Power Illinois.

The legislation would also implement a VPP program enabling electricity users with small-scale energy generation and storage systems to offer flexibility to the grid and further reduce energy costs.

Ratepayers are already feeling the pain of a sluggish interconnection system that is leading to a shortfall of energy supply. The July 2024 PJM Interconnection energy capacity auction resulted in an 833% increase in energy prices, due to an anticipated energy generation capacity shortfall. The prices settled in that procurement exercise will increase power bills by as much as $30 per month for millions of Illinois residents in the PJM Interconnection territory, according to the SEIA.

“Illinois’ power grid needs this legislation to accommodate high-energy emerging industries such as data centers, quantum computing, and AI,” Republican Hernandez said, referring to artificial intelligence. “This investment will pay dividends and lower energy bills for decades to come.”

Read the full text of SB 2497 here.

From pv magazine USA.