Illinois Gov. JB Pritzker (D) has signed the Clean and Reliable Grid Affordability Act, which seeks to expand virtual power plants (VPPs) and energy storage in the state.
“In Illinois, we are pursuing every available option to produce affordable, efficient, clean and abundant energy,” Pritzker said in a statement. “We are leaving no stone unturned in the work to produce more electricity, lower prices for our people and secure our long-term energy future.”
The CRGA aims to cut power bills while moving forward on the state’s clean energy vision, which continues despite the federal government abandoning clean energy policies, he added. The Illinois Power Agency (IPA) said the bill is expected to save customers about $13.4 billion in savings over two decades.
The bill requires a procurement of 3 GW of grid-scale battery storage by 2030, which will help meet the need for capacity and lower power bills. Illinois is home to 11 nuclear reactors, and the bill lifts a ban on building a new nuclear facility.
Another provision requires utilities to create programs for virtual power plants (VPPs) to allow homes and small businesses to get paid to harness smart thermostats, solar panels, distributed batteries and electric vehicle charging to help balance the grid.
The bill also requires that standard energy efficiency programs are expanded, which will come with new spending requirements for low-income customers while removing the formula rates utilities get for administering such programs. Utilities will be required to offer time-of-use pricing to allow residential customers to pay less for power outside of peak times.
The IPA has handled some planning since its creation almost 20 years ago, but the CRGA requires a new integrated resource planning (IRP) process. The new IRP will be run by the Illinois Commerce Commission and its staff with input from the IPA and other agencies.
The first plan for the state’s main utilities required under CRGA is due from ICC staff by Nov. 15, 2026, with the commission to vote on it later. The IRP process is to be repeated every four years after ICC staff files the second with a due date of Sept. 30, 2029.
CRGA makes other changes such as directing the IPA to propose long-term clean energy contract procurements and protects contracted renewables from inflation by tying the budget for the renewable portfolio standard to inflation.
The bill authorizes the ICC to accelerate any pending renewable projects so they can take advantage of expiring federal tax credits.
Pritzker’s office noted that since the passage of the Climate and Equitable Jobs Act in 2021, Illinois has supported more than 6 GW of renewables, with another 6 GW under development.
The American Clean Power Association welcomed the Illinois legislation, saying it offers a framework to expand storage and reduce price volatility in the process.
“CGRA is advancing smart, timely solutions,” ACP Senior Vice President for State Affairs Sarah Cottrell Propst said in a statement. “With new investments in energy storage and virtual power plants, Illinois is positioning itself to keep energy costs low, improve reliability, and create clean-energy and manufacturing jobs — proven strategies that benefit consumers and strengthen the economy.”
The CRGA makes Illinois the 13th state to set up a procurement target for battery storage, the Clean Energy States Alliance said in a statement. An analysis found that the storage could save customers $3 billion over the next 20 years.
“States across the country are increasingly using energy storage to support the transition to clean, reliable and affordable energy,” CESA Senior Project Director Todd Olinsky-Paul said. “Energy storage can reduce reliance on costly and polluting fossil fuel ‘peaker’ plants, integrate clean renewable power onto the grid, increase energy resilience, lower air emissions and support ratepayer affordability.”
