Illinois targets 3 GW of grid-scale energy storage by 2030

Illinois has become the latest state in the United States to adopt energy storage procurement targets following Governor JB Pritzker’s signing of the Clean and Reliable Grid Affordability Act (CRGA).

The bill aims to lower monthly utility bills for householders while providing the necessary measures to strengthen the electricity grid. The bill is expected to save Illinois consumers $13.4 billion over the next two decades.

Energy storage procurement will play a key role in the planned cost-saving policies and renewable energy rollout, with the CRGA setting out a State procurement target of 3 GW of grid-scale BESS by 2030.

The legislation will also require utilities to create virtual power plant (VPP) initiatives that pay participating households and businesses to optimize their energy consumption for the grid. Utilities will be required to offer time-of-use pricing to allow participating residential customers to pay less for power used outside of peak times.

To expedite the development of new renewable energy projects in Illinois, the bill will extend clean energy siting reforms to storage projects, allowing the Illinois Commerce Commission to accelerate projects before federal tax credits expire.

Grid-scale storage projects will be required to meet labor and equity standards that ensure disadvantaged communities can benefit from jobs created. Funding has been set aside to provide small businesses with technical assistance to comply with Project Labor Agreement requirements.

“In Illinois, we are pursuing every available option to produce affordable, efficient, clean, and abundant energy. We are leaving no stone unturned in the work to produce more electricity, lower prices for our people, and secure our long-term energy future,” said Pritzker after signing the CRGA.

“The Clean and Reliable Grid Affordability Act sets a national standard in the effort to lower energy costs and marks a historic step forward in our clean energy vision. Once again, Illinois is stepping up where the federal government is failing,” Pritzker said.

Warren Leon, Executive Director of the Clean Energy States Alliance (CESA), said that Illinois’ support for energy storage comes at a critical time. “Americans need lower energy costs and more clean electricity generation, and energy storage helps deliver that,” the CESA leader said. The CESA is a coalition of state energy agencies working to advance renewable energy on a state level. According to its website, which lists the energy storage targets of 13 member states, Illinois has 200 MW of utility-scale storage currently installed.

“The Illinois Power Agency supports the state’s goal for new energy storage projects and recognizes storage is a necessary component of Illinois’ clean energy future,” said the organization’s Director Brian Granahan. “In adding new supply through 3 GW of dispatchable energy storage, the benefits of these investments are anticipated to meaningfully outweigh their costs, ultimately making electricity more affordable for Illinois residents and businesses.”