Failed attempt to boost battery storage in Illinois: Next steps to consider
The Clean and Reliable Grid Affordability Act, a major clean energy bill aimed at spurring 6 gigawatts of storage by 2030, failed to pass in Illinois' legislative session. The bill, which would have created state incentives for energy storage and grid investments, aimed to facilitate solar-plus-storage projects and make Illinois one of several states offering subsidies for battery storage on the grid.
If passed, the Act was expected to result in lower electricity costs for customers, according to an analysis by the Illinois Power Agency. The agency found that customers would pay less for electricity under the Act. By 2035, the average Ameren residential customer could see bills drop by up to $20 a month, and the average ComEd residential customer could see monthly bills drop by up to $8.50.
However, the Act faced opposition from several groups, including the American Petroleum Institute-Illinois, Illinois Farm Bureau, Illinois Chamber of Commerce, a chemical industry group, and an Illinois manufacturers' trade group. Cost concerns were the main reason for their opposition. Criticism generally comes from stakeholders concerned about the plan excluding households and small businesses from tax reductions granted only to major industry, leading to concerns over fairness and budgeting constraints.
The political group that opposed the flawed Clean and Reliable Grid Affordability Act was not explicitly named in the search results. However, solar industry leaders supported the Act as a means to build on the solar boom sparked by previous state laws. MeLena Hessel, the Midwest deputy program director at Vote Solar, a clean-energy advocacy organization, stated that the Act would have immediately enabled the deployment of renewables and storage, which are the fastest, cheapest ways to address rising capacity costs.
The failure of the Clean and Reliable Grid Affordability Act comes at a time when increased electricity demand, including from data centers, has boosted the fortunes of the state's nuclear plants. Equipment backlogs are slowing down plans to build gas-fueled power plants, and solar and batteries may be the nation's best bet to quickly meet growing electricity demand.
As the legislators aren't scheduled to meet again until a short veto session in the late fall, Gov. JB Pritzker, a Democrat, could reconvene the legislature sooner to reconsider the Act. Linhares, a representative from clean-energy advocacy, is confident that the consensus language around energy storage and solar will be implemented in the future.
In the meantime, prices are expected to rise in coming months due to high capacity costs for the grid in Illinois. The expected rise in power bills in the Chicago area is over $10 a month on average. Without the Clean and Reliable Grid Affordability Act, it remains to be seen how Illinois will address its energy needs and costs in the future.
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