Illinois Needs Batteries. Will A New Incentive Program Help?
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Illinois’ first incentive procurement for utility-scale batteries resulted in agreements for 600 megawatts, below the initial target and far short of the 588 MW sought in ComEd territory. Three selected projects account for 520 MW in Ameren Illinois territory, while one 80 MW project was selected in ComEd’s region. The state is seeking developer feedback before its next procurement.

Illinois’ first state incentive procurement for utility-scale batteries secured 600 megawatts of proposed storage, falling short of the initial target and leaving a large gap in northern Illinois. The results matter because a 2025 state law requires 3 gigawatts of batteries by the end of 2030, while electricity demand is rising and the state continues expanding renewable energy.

The Illinois Power Agency, which procures electricity for the state’s large utilities, held an auction-style proceeding in August to award incentives to companies proposing battery projects. The agency selected four developers’ bids statewide. The combined 600 MW is less than two-thirds of the amount sought in this first procurement, according to the source report.

The regional results were sharply different. In ComEd territory in northern Illinois, the state sought 588 MW but selected only one proposed project, an 80 MW battery. In Ameren Illinois territory, which covers much of the rest of the state, three bids were selected for a combined 520 MW. The report does not say that these projects are built or operating; they are planned projects tied to the incentive awards.

Illinois currently has 102 MW of storage, according to energy data firm Cleanview. If all selected projects are completed, the new capacity would substantially expand that total, but it would still represent only part of the state’s 3 GW requirement. The agency is collecting feedback from developers through October 28, with the aim of improving the next procurement.

At a glance
reportWhen: Procurement results announced after an…
The developmentThe Illinois Power Agency’s first battery-storage incentive procurement selected projects totaling 600 MW, less than two-thirds of the initial procurement target.

The Gap in Northern Illinois

The procurement shows that state incentives can attract proposed battery projects, but the response was uneven. The contrast between 520 MW selected in Ameren territory and 80 MW in ComEd territory points to a particular challenge for meeting the statewide target: a large overall award does not guarantee that projects will be available where they are needed.

Battery storage can hold electricity for use later, helping the grid manage shifts in renewable generation and periods of high demand. The source report says advocates view storage as increasingly necessary as data center development drives up energy demand. The 600 MW result is therefore a step toward expanding grid capacity, not proof that the state is on track to meet its full 2030 mandate.

Project selection also is not the same as delivery. Developers must still move projects through development and grid-connection processes. The selected capacity may help Illinois build experience with its incentive program, but the timing and completion of the projects remain important to the state’s progress.

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Illinois’ 2030 Storage Mandate

Illinois has added substantial renewable energy over the past decade as it works toward a 100% clean-energy mandate by 2050. Battery deployment has lagged: the state’s current 102 MW is far below the 3 GW required by the law passed last fall, according to the source report. The August proceeding was an early step in using incentives to bring forward projects.

Other states offer examples of how deployment can take time. The report says the United States’ installed storage capacity grew from 4.7 GW in 2022 to more than 50 GW, citing federal data. Indiana has 587 MW, more than five times Illinois’ current capacity, while Texas and California have installed more than 18 GW and 16 GW, respectively. Those figures are comparisons of installed capacity, not evidence that Illinois will follow the same pace.

New York provides a closer policy comparison: it has a 3 GW utility-scale storage goal for 2030 and, in September, secured commitments for 950 MW through a similar incentive mechanism. The source report says two companies selected in Illinois are based in New York. It also identifies grid interconnection delays in the PJM Interconnection, which includes ComEd territory, as a barrier that may affect whether proposed projects can connect in time.

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

— Brett Sproul, who leads Illinois regulatory work for Advanced Energy United

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Projects Still Face Grid Delays

The selected bids are proposals, and the source report does not establish that the projects have completed permitting, secured final interconnection approvals or begun construction. It is also unclear how much of the 600 MW will be operational by the state’s 2030 deadline. Those distinctions matter because the law’s target concerns batteries on the grid, not simply projects selected for incentives.

The procurement leaves unanswered why so few bids were selected in ComEd territory and whether changes to the incentive design can address that imbalance. Sproul of Advanced Energy United pointed to PJM’s interconnection queue as a source of uncertainty for developers. The report does not identify the connection status or construction schedule of each selected project.

It is also not yet clear how the next procurement will differ, how much capacity it will seek in each utility territory, or whether the selected projects will secure all remaining approvals. The agency’s review of developer feedback may help explain the first round’s results, but the report gives no specific changes or timeline beyond the feedback deadline.

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Agency Reviews Developer Feedback

The Illinois Power Agency is accepting feedback from developers through October 28. It says the input will inform improvements to the next procurement process. The next round’s schedule, target capacity and revised terms are not specified in the source material.

Readers can watch for the agency’s account of what limited participation in ComEd territory and whether it proposes changes to incentive design or procurement requirements. Progress will also depend on whether selected developers can advance through project development and PJM’s interconnection process. The key measure ahead is not just the amount awarded, but how much new storage is actually connected and operating by 2030.

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Key Questions

How much battery storage did Illinois select in its first incentive procurement?

The Illinois Power Agency selected proposed projects totaling 600 MW. That is less than two-thirds of the capacity sought in the initial procurement, according to the source report.

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

In ComEd territory, the state sought 588 MW and selected one proposed 80 MW project. In Ameren Illinois territory, three bids were selected for a combined 520 MW. The report does not establish a definitive reason for the difference; it cites PJM interconnection delays as a source of uncertainty for developers in ComEd territory.

Does the 600 MW mean those batteries are already operating?

No. The 600 MW refers to selected proposed projects, not operating capacity. Their construction, connection to the grid and operating dates are not confirmed in the source material.

What is Illinois’ battery-storage goal?

A state law passed last fall requires 3 GW of batteries on the grid by the end of 2030. Illinois currently has 102 MW of storage, according to Cleanview, cited in the report.

What happens after this procurement?

The Illinois Power Agency is gathering developer feedback through October 28 to inform the next procurement. The agency has not yet specified the next round’s schedule or capacity target in the source material.

Source: rss

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