Tenders
Illinois energy storage legislation calls for 8.5 GW of projects through 2050
Two proposed bills aimed at improving grid reliability via small scale energy systems could save bill payers $3 billion through 2050.
By
Ryan Kennedy
Oct 16, 2024
Markets
Policy
Tenders
Residential battery energy storage is part of Illinois' plans to bolster the resilience of its grid. | Image: Wikimedia Commons
Lawmakers in Illinois have submitted a pair of bills, HB5856 and SB3959, to support grid modernization and the encouragement of small-scale, “distributed” energy resources including battery energy storage and rooftop solar.
The bills establish a clean energy storage procurement mandate to improve grid resilience and remove barriers to renewables development and grid interconnection. The bills call for 8.5 GW of energy storage procurement across the state by 2050.
The legislation suggests Illinois consumers could save $30 per month on their energy bills, prevent more than $7 billion in blackout-related costs, and create as much as $16 billion in economic benefits through 2050.
The proposed laws aim to future-proof Illinois’ energy grid and economy, reduce consumer costs, meet climate goals, generate jobs, and mitigate the increasing risk of blackouts. The state wants 100% emissions-free electricity by 2050.
Potential
“While Illinois is on the right path to meet its goals, it is at risk of not meeting its more immediate deadlines which will arrive as early as 2030,” said Senator Bill Cunningham (Democrat-Chicago). “HB5856 and SB3959 are thoughtful, strategic bills that will help unleash the clean energy economy’s full potential while strengthening our electric grid to make it more reliable, encouraging development and job growth, and creating additional protections for consumers and all ratepayers.”
Ratepayers are already feeling the pain of a sluggish interconnection system that is leading to a shortfall of energy supply. The July 2024 energy capacity auction held by utility PJM Interconnection drove an 833% increase in energy prices due to an anticipated energy capacity shortfall. That could increase power bills by as much as $30 per month for millions of Illinois residents in PJM territory, according to trade body the Solar Energy Industries Association (SEIA).
A study by Mark Pruitt, former director of the Illinois Power Agency and a Northwestern University professor, found adding 8.5 GW of clean energy storage would provide $3 billion in consumer cost savings; save $7.3 billion in blackout-related costs, through increased grid reliability; and generate up to $16.3 billion in economic activity in Illinois by 2050.
Grid connection
The bills would also reform the electric grid interconnection process in Illinois. Currently, the method varies significantly from project to project, which can result in significant unanticipated costs to connect to the grid. Oftentimes, that large, unanticipated cost arises after a development is completed, which can terminate a project even if the system is built and ready to be energized, said the SEIA. HB5856 and SB3959 aim to increase transparency and predictability in the interconnection process to reduce surprise changes and costs, and maintain the integrity and safety of the grid.
“When the system has been built and all that is left is to connect it to the grid, this is not when a project should be stalled or failed,” said Carlo Cavallaro, Midwest regional director of the Coalition for Community Solar Access (CCSA). “Unfortunately, it happens more than one might think so HB5856/SB3959 addresses this in a way that makes the process more transparent and collaborative.”
Bill components:
- Establish an 8.5 GW utility-scale, cumulative storage procurement target for the Illinois Power Agency.
- Create a storage-plus-solar or wind ecosystem that empowers increased storage development at all scales and across multiple technology, from client-side “behind-the-meter” to utility-scale systems.
- Create incentive programs for customers to adopt technology that reduces peak loads, behind-the-meter storage that reduces peak loads or exports, and combined community solar-plus-storage developments.
- Establish an energy storage and virtual power plant (VPP) ecosystem that makes it less likely a grid will need to tap non-renewable and high-pollutant fuels during periods of high usage.
Read the full bill text here.
From pv magazine USA.
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