Illinois Needs Batteries. Will A New Incentive Program Help?
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Illinois’ first incentive procurement for grid batteries resulted in agreements for 600 megawatts of storage, below the initial target. Three selected projects account for 520 MW in Ameren Illinois territory, while one 80-MW project was selected in ComEd territory. Developers and advocates point to uncertainty over PJM grid connections as one obstacle to building more projects.

Illinois selected developers for 600 megawatts of battery storage in an incentive procurement run by the Illinois Power Agency in August, falling short of the initial target and leaving a large gap in northern Illinois. The projects would expand a state fleet that currently totals 102 MW, as Illinois works toward a new legal requirement for 3 gigawatts of grid batteries by the end of 2030.

The state sought proposals for 588 MW in ComEd territory, which covers northern Illinois, but selected a single developer planning an 80-MW project there. In Ameren Illinois territory, which spans much of the rest of the state, the agency selected three developers for a combined 520 MW. Together, the selected projects amount to 600 MW statewide, below the initial procurement target described in the report.

The Illinois Power Agency organized the proceeding as an auction-type process to award incentives to companies promising to develop storage. It is now collecting feedback from developers through October 28, with the aim of improving the next procurement. The selected capacity represents commitments to build projects; the source material does not say the batteries are already operating or specify when each project will be completed.

Advocates described the result as mixed: they welcomed the projects and the signal of developer interest, while expressing disappointment in the ComEd-area outcome. James Gignac of the Union of Concerned Scientists said the procurement was “a strong start” and indicated “there is interest in developing energy storage in Illinois.”

At a glance
reportWhen: Procurement results announced after the…
The developmentThe Illinois Power Agency’s August procurement selected developers for 600 MW of battery storage, with results falling short of the initial target, particularly in northern Illinois.

A Gap in Northern Illinois

The procurement matters because Illinois has set a large storage target while electricity demand is rising, with data center development cited by advocates as a driver. Batteries can store electricity and make it available later, including when renewable generation from wind or solar is lower. The selected projects could therefore help the state integrate renewable power and meet demand, but their planned capacity is only part of the longer path to 3 GW by 2030.

The regional split also matters. The 80 MW selected in ComEd territory is far below the 588 MW the state sought there, while Ameren territory accounted for most of the successful capacity. That uneven outcome raises practical questions about whether incentives alone will draw enough projects to the places where the state is seeking them. It does not, by itself, establish why fewer ComEd-area bids succeeded.

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Illinois’ First Storage Procurement

Illinois passed a law last fall requiring 3 gigawatts of batteries by the end of 2030. The August proceeding was an early step toward meeting that mandate. Before the selected projects, Illinois had 102 MW of storage, according to energy data firm Cleanview; the source report says the new deals would increase that total manifold, but does not provide a final operating-capacity forecast or project schedule.

Battery deployment is increasing nationally, though development has varied by state. Federal data cited in the report puts U.S. grid storage at more than 50 GW, up from 4.7 GW in 2022. Texas and California have installed more than 18 GW and 16 GW, respectively. Indiana, with 587 MW, has more than five times Illinois’ current capacity, according to the report.

New York offers a comparison: it has a 3-GW utility-scale storage goal for 2030 and secured promises for 950 MW through the same type of incentive mechanism in September. Those figures are procurement commitments, not confirmation that the capacity is already operating. Two of the four companies selected in Illinois are based in New York.

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

— Brett Sproul, Illinois regulatory lead at Advanced Energy United

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Grid Connections and Project Timelines

The procurement results do not establish whether every selected project will be built, when it would begin operating, or how much of the capacity can connect to the grid by 2030. In the PJM Interconnection region, which includes ComEd territory and parts of 12 other states, developers face lengthy waits to connect projects, according to the report. Sproul said those delays create uncertainty about whether proposed batteries could start storing power before Illinois’ deadline.

The source material also does not explain why the ComEd-area procurement produced only one selected project, or whether the next round will change its incentive design, eligibility rules, or target allocation. Feedback from developers is still being gathered, so the reasons for the shortfall and the agency’s response remain open.

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Developer Feedback Before Round Two

The Illinois Power Agency is accepting developer feedback through October 28 to help shape a subsequent procurement. The agency’s next process is the immediate milestone: its design may address barriers identified by bidders, though the source report does not give a date for that round or detail changes the agency plans to make.

Progress will depend not only on incentives and future selections but also on projects advancing through development and the PJM interconnection process. Readers should distinguish future procurement awards from operating batteries: the state’s 2030 requirement is a deployment goal, and the selected 600 MW is not yet reported as installed capacity.

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Key Questions

How much battery storage did Illinois select?

The Illinois Power Agency selected developers for 600 MW in its August procurement: 80 MW in ComEd territory and 520 MW in Ameren Illinois territory.

Did the procurement meet Illinois’ target?

No. The statewide result was below the initial procurement target described in the report. In ComEd territory, the state sought 588 MW but selected one 80-MW project.

Are the selected batteries already operating?

The report describes companies promising to develop projects, not batteries confirmed as operating. It does not provide individual construction or operation dates.

What could make it harder to build the projects?

Industry representative Brett Sproul pointed to uncertainty and long delays in PJM’s grid-connection queue, which can make it unclear whether projects will connect in time for the state’s 2030 deadline.

What happens after this procurement?

The Illinois Power Agency is collecting developer feedback through October 28 to inform a future procurement. The date and design of the next round have not been specified in the source material.

Source: rss

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