Advanced Energy United News

New Study Demonstrates Critical Need for a Substantial Energy Storage Program to Meet Future Energy Demands in Illinois

Written by Rory Coleman | Aug 12, 2024

CHICAGO, IL – Without rapid investments in clean energy storage, Illinois consumers will pay up to $30 more per month for energy, and the state will face energy shortfalls and a higher risk of blackouts, according to a newly released study.

The study, “Cost and Benefit Analysis of Energy Storage Resource Deployment in Illinois,” found that deploying at least 8,500 MW 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.

The study emphasizes the urgent need for new policies that would dramatically accelerate the deployment of energy storage in Illinois.

“Renewable energy storage is a key component to ensure grid reliability and reach clean energy targets,” said Mark Pruitt, author of the study, an associate professor at Northwestern University, and former Director for the Illinois Power Agency. “Without a legislative solution soon, the regional power grids that serve Illinois are projected to experience capacity shortages and increased consumer costs, who could see electricity bills rise as much as $30 more per month without adequate storage.”

Now is the time for Illinois to plan for the future and ensure a reliable power grid amidst the transition to clean energy as federal, regional, and state energy regulators project that Illinois will face an energy capacity shortfall as early as 2030 if a clean energy storage program is not implemented soon. Such a program would not only increase the state’s grid reliability, but also provide high-quality, family-supporting careers, protect consumers from rising energy costs, meet the state’s clean energy goals, and ensure that Illinois remains an attractive destination for business investment, especially from energy-intensive industries like data centers, artificial intelligence companies, and manufacturing.

The study finds that battery energy storage is the most cost-effective, timely, and attainable long-term solution. The nationally lauded and successful Climate and Equitable Jobs Act (CEJA) of 2021 supercharged the clean energy industries in Illinois and established a sturdy foundation to expand upon. Pending legislation (HB5856 and SB3959) will complement CEJA by incentivizing the installation and operation of energy storage resources, implementing a Virtual Power Plant (VPP) Program that will be necessary to improve the energy grid’s reliability, protecting consumers from rising energy prices, boosting the state’s economy, and ensuring that Illinois meets the clean energy mandates established by CEJA.

Key highlights of the study include:

  • Avoided cost of power outages. Battery energy storage will reduce the expected probability of power outages, saving a projected $5.8 billion for Illinois consumers between 2030-2049.
  • Reduced cost of emissions. Battery energy storage resources are projected to reduce the use of fossil fuel power plants while increasing the co-generation benefits of new wind and solar resources to meet Illinois’ peak energy needs. This will reduce emissions negative externality costs by $531 million to $4.8 billion in Illinois between 2030 and 2049.
  • Increased economic activity. Constructing and operating battery energy storage projects will increase employment in Illinois by 32,417 and 115,329 full-time equivalent years and support an increase of between $3.9 billion to $16.3 billion in value-added activity statewide. The total macro-economic benefits for the state are projected to be between $11.8 billion and $28.4 billion.

The study also provides answers to critical questions on the proposed program:

  • How reliable is the Illinois power grid?
    Federal, regional, and state energy regulators all identify future capacity shortages within Illinois. There is an emerging consensus that both retirements and business growth are revealing the limits of the current electricity grid.
  • How can we improve Illinois’ power grid reliability?
    Planning for increases in new clean, affordable, and reliable capacity resources in Illinois is the most cost-effective way to offset the eventual retirement of fossil fuel plants at the same time new business growth drives demand upward.
  • When would a battery energy storage program need to begin?
    Large energy projects require years to plan, permit, and build, and customer-sited storage can be deployed immediately with positive legislation. Immediate action is required to begin the process of getting battery energy storage projects online before projected shortages occur prior to 2030, and storage will provide immediate solutions to energy grid resiliency and rate relief to all energy customers in Illinois.
  • What are the consumer cost impacts of an energy storage program in Illinois?
    Under this plan, Illinois consumers will realize a net reduction of $3 billion in utility bill projected costs as a result of deploying 8,500 MW of energy storage statewide. Based on current estimates, the average single-family utility account served by Ameren Illinois would realize an average cost savings of $7/month over 20 years and the average ComEd single family residential account would realize an average cost savings of $4/month.

Pruitt’s study empirically affirms that Illinois needs to act now and proactively plan for additional battery energy storage capacity, but it’s not the first report with similar findings.

In August 2022, the results of PJM Interconnection’s “Illinois Generation Retirement Study” concluded that CEJA-related generator retirements “create the need to import a substantial amount of remote replacement power to serve load.” To solve this problem, increasing storage capacity would be the fastest and most reliable solution to increasing the capacity of dispatchable energy resources throughout the state.

Illinois is a clean energy leader, having passed CEJA and other reforms to encourage the growth of clean, affordable, and reliable energy. Building on this solid foundation by focusing on newer innovative energy solutions, like battery energy storage, will solidify Illinois’ national clean energy leadership, sending a clear signal that Illinois is open for clean energy business and will do it equitably, reliably, and affordably for many years to come.

To view the full report, click here.

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About Advanced Energy United

Advanced Energy United educates, engages, and advocates for policies that allow our member companies to compete to repower our economy with 100% clean energy. We work with decision makers at every level of government as well as regulators of energy markets to achieve this goal. The businesses we represent are lowering consumer costs, creating millions of new jobs, and providing the full range of clean, efficient, and reliable energy and transportation solutions. Together, we are united in our mission to accelerate the transition to 100% clean energy in the United States. Advanced Energy United is online at AdvancedEnergyUnited.org and @AdvEnergyUnited.

About American Clean Power (ACP)

The American Clean Power Association (ACP) is the leading voice of today’s multi-tech clean energy industry, representing over 800 energy storage, wind, utility-scale solar, clean hydrogen and transmission companies. ACP is committed to meeting America’s national security, economic and climate goals with fast-growing, low-cost, and reliable domestic power. Learn more at cleanpower.org.

About Clean Grid Association (CGA)

Clean Grid Association (CGA) is a 501(c)(6) nonprofit organization based in St. Paul, Minn., whose mission is to advance renewable energy in the Midwest. CGA has been an active stakeholder in the MISO process at the state and regional levels and a leading organization working on transforming state energy policy. CGA's membership includes businesses investing in wind, solar, storage, hydrogen and transmission projects, as well as environmental nonprofit organizations, public advocacy groups & clean energy advocates who come together to build the clean energy grid of the future. Learn more at cleangridalliance.org.

About Coalition for Community Solar Access (CCSA)

CCSA is a national trade association representing over 130 community solar developers, businesses, and nonprofits. Together, we are building the electric grid of the future where every customer has the freedom to support the generation of clean, local solar energy to power their lives. Through legislative and regulatory advocacy, and the support of a diverse coalition — including advocates for competition, clean energy, ratepayers, landowners, farmers, and environmental justice — we enable policies that unlock the potential of distributed energy resources, starting with community solar. For more information, visit https://www.communitysolaraccess.org and follow the group on X (Twitter)LinkedIn, and Youtube.

About Illinois Solar Energy and Storage Association (ISEA)

The Illinois Solar Energy and Storage Association (ISEA) is a non-profit organization that promotes the widespread application of solar and other forms of renewable energy through our mission of education and advocacy. Representing over 150 solar businesses, ISEA is the state resource for renewable energy related policy developments, educational classes, events and access to local renewable energy businesses. http://www.illinoissolar.org.

About Solar Energy Industries Association (SEIA)

The Solar Energy Industries Association® (SEIA) is leading the transformation to a clean energy economy, creating the framework for solar to achieve 30% of U.S. electricity generation by 2030. SEIA works with its 1,000 member companies and other strategic partners to fight for policies that create jobs in every community and shape fair market rules that promote competition and the growth of reliable, low-cost solar power. Founded in 1974, SEIA is the national trade association for the solar and solar + storage industries, building a comprehensive vision for the Solar+ Decade through research, education and advocacy. Visit SEIA online at www.seia.org and follow @SEIA on Twitter, LinkedIn and Instagram.

Click here to learn more about Advanced Energy United's work in Illinois.