Illinois Needs Batteries. Will A New Incentive Program Help?
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Illinois’ first incentive procurement for grid batteries resulted in commitments for 600 megawatts, below the initial target set under a state law requiring 3 gigawatts by the end of 2030. Projects totaling 520 MW were selected in Ameren Illinois territory, while only one 80-MW project was selected in ComEd territory. The Illinois Power Agency is seeking developer feedback before its next procurement.

Illinois selected proposals for 600 megawatts of battery storage in its first state incentive procurement, missing the initial procurement target under a law requiring 3 gigawatts by the end of 2030. The results split sharply by region: developers were chosen for 520 MW in Ameren Illinois territory, but just one 80-MW project was selected in ComEd territory, where the state sought 588 MW.

The Illinois Power Agency, which procures electricity on behalf of the state’s large utilities, held the auction-style proceeding in August. Developers selected in the process are expected to build battery projects in exchange for incentives. The statewide total of 600 MW is less than two-thirds of the target set for this initial procurement.

In northern Illinois, ComEd territory received only one selected proposal: an 80-MW battery project. In the much larger service area covered by Ameren Illinois, three developers’ bids were selected for a combined 520 MW. The source report does not specify the projects’ individual locations, construction schedules or expected operating dates.

The selected projects would substantially expand a state fleet that currently has 102 MW of storage, according to energy data firm Cleanview. Advocates described the overall outcome as a starting point despite the shortfall in northern Illinois. James Gignac of the Union of Concerned Scientists called it “a strong start” and said it indicates interest in developing storage in Illinois.

At a glance
reportWhen: Procurement results announced after an…
The developmentIllinois has selected developers for 600 MW of battery storage through its first incentive procurement, falling short of the initial target, especially in ComEd territory.

Closing Illinois’ Storage Gap

Batteries can store electricity and send it back to the grid later, helping balance supply when renewable generation varies and demand rises. The question has added weight in Illinois as data center development drives up energy demand, according to the source report. More storage could support the state’s clean-energy ambitions and give grid operators another way to manage periods of high demand.

But the procurement’s regional imbalance matters. The 80 MW selected in ComEd territory is far below the 588 MW sought there, leaving a large gap in the part of the state where the target was set. Meanwhile, the 520 MW selected in Ameren territory shows that developers submitted bids that met a much larger share of the planned amount in that service area. The results do not establish why the two regions differed, but industry representatives have pointed to uncertainty over connecting projects to the grid.

The selected capacity is also a commitment to develop projects, not evidence that all 600 MW are already operating. Illinois’ ability to reach its 2030 requirement will depend on whether selected projects proceed and whether future procurement rounds attract additional proposals.

A New Statewide Procurement

Illinois has expanded renewable energy over the past decade as it pursues a 100% clean-energy mandate by 2050, but battery storage has lagged. Last fall, the state passed a law requiring 3 GW of batteries on its grid by the end of 2030. The August proceeding was an early step in turning that requirement into projects.

Battery deployment has grown nationally, but it is uneven across states. Federal data cited in the source report show U.S. grid storage rising from 4.7 GW in 2022 to more than 50 GW. Illinois’ current 102 MW remains well below Indiana’s 587 MW, while Texas and California each have more than 16 GW, according to the report.

Grid connection delays are a particular issue in the PJM Interconnection, which manages power flows across parts of 13 states, including ComEd territory. Brett Sproul of Advanced Energy United said developers may be willing to build in Illinois but face uncertainty about whether projects can connect and begin storing power by the state’s deadline.

““However because of the interconnection queue at PJM there’s a lot of uncertainty””

— Brett Sproul, Illinois regulatory lead for Advanced Energy United

Projects Face Connection Delays

The procurement results do not show how many selected projects have completed permitting, secured financing or obtained firm grid-connection dates. It is also not clear whether the 600 MW will enter service on a schedule that helps Illinois meet its 2030 requirement. The source report gives no explanation for why only one 80-MW proposal was selected in ComEd territory against a 588-MW target.

Interconnection delays in PJM are a concern raised by industry representatives, but the available information does not identify specific queue positions or timelines for the Illinois projects. Nor does the procurement result establish how much additional capacity future rounds will secure. Those details will determine whether the initial commitments translate into operating batteries.

Feedback Before the Next Auction

The Illinois Power Agency is collecting feedback from developers through Oct. 28, with the stated goal of improving the next procurement process. That feedback may help the agency identify changes that could attract more proposals, particularly in ComEd territory, though the source report does not specify what revisions are planned.

The next milestones are the agency’s review of developer responses, further procurement activity and progress on the selected projects’ development and grid connections. Readers will need to watch for details on project schedules and whether additional rounds close the gap between the initial 600 MW and the state’s 3-GW target for the end of 2030.

Key Questions

How much battery storage did Illinois secure in this procurement?

Developers’ proposals were selected for 600 MW of storage statewide. That is less than two-thirds of the target for the initial procurement.

Why was the result different in ComEd and Ameren Illinois territory?

The state selected one 80-MW project in ComEd territory and three bids totaling 520 MW in Ameren territory. The report does not establish the cause of the difference. Industry representatives cited uncertainty over PJM grid connections as one barrier to development.

Does the 600 MW mean the batteries are already operating?

No. The procurement selected developers’ proposals; the reported results do not say the projects are built or operating. Their schedules and grid-connection status are not specified.

What is Illinois’ battery storage requirement?

A state law passed last fall requires 3 gigawatts of batteries on Illinois’ grid by the end of 2030. The 600 MW procurement result is one step toward that requirement.

What happens next?

The Illinois Power Agency is collecting developer feedback through Oct. 28 to help improve the next procurement. The agency’s subsequent plans and the selected projects’ construction timelines have not been reported in the source material.

Source: rss

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