The Clean and Reliable Grid Affordability Act will allow for more energy storage and create a virtual power plant program
SPRINGFIELD, IL—Illinois legislators today responded to rising utility bills and growing energy demand by passing the Clean and Reliable Grid Affordability Act (CRGA), paving the way for substantially more battery storage in the state.
“Nearly everyone is grappling with rising costs and historic demand. Illinois has set an example by focusing on the quickest energy resources we can deploy in the face of strong pressure to do nothing,” said Samarth Medakkar, Illinois Policy Lead for Advanced Energy United. “CRGA builds in-state energy storage facilities instead of sending our dollars to out-of-state gas plants or squandering resources to keep old generators running. Now we will see gigawatts of new batteries online before the decade ends.”
CRGA builds on the 2021 Illinois Climate and Equitable Jobs Act (CEJA). CEJA cemented Illinois as a national leader in energy policy, but market conditions have changed drastically since its passage. Projections for energy demand have increased sharply, battery storage costs have declined, and the phase out of federal tax credits is driving a surge in private investment in new projects.
CRGA is an important next step to maintain momentum. The bill provides the signal for developers to build 3 gigawatts of storage. Batteries store energy when it is not in high demand and then dispatch it with the flip of a switch when needed. The energy storage provisions will save ratepayers $13 billion over 20 years, according to the Illinois Power Agency. The bill also creates a virtual power plant (VPP) program which delivers immediate supply and expands energy efficiency to help utility customers waste less energy and save money.
Energy bills rose substantially this summer because of a supply crunch that, before CRGA’s passage, had no end in sight. Despite unprecedented demand for energy, the federal government is making it harder to build the lowest-cost, most reliable supply resources, wind and solar. A shortage of natural gas turbines means battery storage is the only real solution.
“CRGA responds to the energy crisis, which is triggered by rising demand and federal roadblocks that are slowing or cancelling wind and solar projects, by allowing the state to build small- and large-scale energy storage. This legislation will lead to more investment by advanced energy companies, creating jobs and addressing costs for Illinois residents,” Medakkar said.
Advanced Energy United applauds the bill’s chief sponsors, Representative Jay Hoffman and Senators Steve Stadelman and Bill Cunningham, and the other leaders that worked tirelessly to convene hundreds of stakeholders and carefully craft legislation that will move the state forward. The measure will now head to Governor JB Pritzker’s desk for his signature.
In addition to CRGA, earlier this month, Illinois solidified its strong leadership by soliciting input from stakeholders on how best to respond to the federal withdrawal from cost-effective technologies. The engagement with stakeholders led utility regulators in Illinois to follow recommendations from United and our partners to update the state’s procurement plans, aiming to double community, commercial, and small-scale solar capacity with the goal of enabling developers to more quickly bring hundreds of additional megawatts of affordable, clean power online.