Illinois passes energy bill to address rising costs with battery storage

Illinois lawmakers have enacted the Clean and Reliable Grid Affordability Act to combat soaring electricity prices by investing in battery storage and lifting a nuclear moratorium. The legislation introduces a temporary surcharge on bills but promises substantial long-term savings. It marks the state's first major climate initiative since President Trump's return to office.

Electricity prices in Illinois have risen by about a third over the past five years, with some regions seeing nearly 50 percent increases. The Illinois Commerce Commission reported more than 170,000 disconnection notices in June, up from approximately 46,000 the previous year.

In response, the state legislature passed the Clean and Reliable Grid Affordability Act (CRGA) during the final two days of its October session. Governor JB Pritzker has pledged to sign the bill. The CRGA aims to bolster the grid amid surging demand from data centers, a phase-out of fossil fuels, and cuts to federal clean energy funding.

Key provisions include lifting a nearly four-decade-old moratorium on new large-scale nuclear reactors, building on a 2022 exception for small modular reactors. Nuclear power already supplies over 50 percent of Illinois's energy, with solar and wind contributing about 13 percent.

To finance expansions, ratepayers will face a surcharge starting in 2030. The Illinois Power Agency estimates the program will cost around $1 billion but save consumers more than $13 billion over 20 years.

The bill mandates a plan for 3 gigawatts of additional battery storage, essential for integrating renewables by storing excess power. It also funds home energy efficiency, geothermal and thermal energy pilots, and electric vehicle charging, while granting new planning powers to the Illinois Commerce Commission.

"It’s an incredibly exciting investment in climate progress," said Jen Walling of the Illinois Environmental Coalition.

This action follows federal changes, including the 'One Big Beautiful Bill' that ended Inflation Reduction Act tax credits, potentially adding $250 annually to household bills. President Trump also canceled nearly $600 million in Illinois grants for grid modernization and methane leak prevention.

Andrew Linhares of the Solar Energy Industries Association called it "a response to the attack on clean energy and attack on Illinois consumers."

Data centers are exacerbating demand; ComEd projects a 40 percent increase by 2040 in northern Illinois. A Lawrence Berkeley National Laboratory study notes varying impacts, with experts like Ryan Hledik of the Brattle Group highlighting the need for investments to balance supply and demand amid aging infrastructure and climate risks.

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