Illinois’ Landmark Energy Law Is Now in Effect. The Real Work Starts Now.
In the last two years, several states – including some considered leaders in advanced energy deployment – have retreated from key energy policy commitments. From energy efficiency to renewable energy deployment targets, these states have balked in the face of rising costs due to load growth. Illinois is not among them. Last fall, the state doubled down, passing a landmark energy package that will deploy more energy storage, wind, solar, energy efficiency, and virtual power plants (VPPs) to address the projected resource adequacy challenge that’s contributing to rising electricity bills for customers in PJM and MISO.
The Clean and Reliable Grid Affordability Act (CRGA) took effect on June 1. The hard work of turning legislation into advanced energy deployment now begins. The next phase will determine whether Illinois can turn CRGA’s policy framework into real projects, real savings, and measurable reliability benefits for customers.
What CRGA Does
CRGA is designed to address the energy affordability challenges hitting Illinois ratepayers. Capacity prices for Illinois customers in PJM and MISO have risen dramatically in recent years, adding to the financial strain on families and businesses. Consumers will feel that pressure this summer, as higher cooling demand meets elevated capacity prices.
CRGA deploys tools best positioned to address these costs: 3GW of new battery storage, a near-term VPP program, expanded energy efficiency, increased funding for additional wind and solar contracts, and improvements to how the state plans for future energy demand. The Illinois Power Agency projects the storage provisions alone will save ratepayers $13 billion over 20 years. Advanced Energy United and its members played an active role in shaping several of these provisions, and will remain engaged to ensure they deliver as intended.
It’s a recognition that these resources are among the most cost-effective and viable near-term solutions to bridging the supply gap expected in the early 2030s. Battery storage and distributed energy resources (DERs) are particularly well-suited to the moment. Compared with new natural gas peakers, which can face fuel-supply constraints, interconnection delays, and long construction timelines, batteries and VPPs can often be deployed more quickly and at costs that have declined dramatically. They charge when energy is cheap and dispatch when it is expensive, directly targeting the peak demand hours that are driving capacity prices higher for every Illinois customer.
The Work Ahead
Legislation sets the direction. Implementation determines whether we will get there. United and our members will be involved in nearly all aspects of implementation to ensure CRGA delivers more energy resources and cost savings, and there is a considerable amount of work ahead.
This summer, the Illinois Power Agency will conduct procurements for the first third of the 3GW energy storage target. Getting those procurements right—ensuring contracts are structured to attract competitive bids, reach commercial operation on time, and deliver the capacity value ratepayers are counting on—will require active engagement from developers, utilities, and advocates alike.
Among CRGA’s overhauls is the establishment of an Integrated Resource Plan (IRP), a multi-stakeholder process coordinated by the Illinois Commerce Commission (ICC) Staff to ensure adequate, reliable, and affordable service consistent with the state’s policy goals. The IRP allows the ICC to make modifications to programs, including budgets for the Renewable Portfolio Standard, energy efficiency programs, fossil plant retirements, or other programs under its jurisdiction, if it finds they are necessary to ensure that the state can meet electricity demand. United has submitted comments to inform scenario planning, load forecasting, and technology assumptions throughout the ongoing IRP workshop process to ensure that renewables, VPPs, and other advanced energy solutions are accurately considered. The first IRP will be filed with the ICC on November 15, 2026, upon which the ICC will initiate a contested proceeding, up to 180 days (extendable by an additional 180 days), to approve the IRP. United expects to intervene in this proceeding.
The ICC will oversee the oversee the scheduled dispatch VPP program, which requires utilities to file tariffs enabling distributed storage systems to operate as a coordinated grid resource. The VPP program is one of CRGA’s most innovative provisions, allowing thousands of behind-the-meter batteries to operate as a coordinated resource that can relieve peak demand across the grid. Getting the tariff design right, including appropriate compensation for participants and clear rules for dispatch, will be critical to driving meaningful participation.
The distributed generation and storage rebate program, which provides $250 per kilowatt-hour for behind-the-meter battery systems, will begin accepting applications under updated rules. This program has the potential to drive significant investment in residential, commercial, and community solar-plus-storage projects, delivering targeted peak demand reduction on the feeders and substations that need it most. Ensuring the program is accessible to commercial storage projects and well-administered will be a priority.
The new ICC siting process creates a state-level backstop for renewable energy and storage projects that face inappropriate local denials or delays. For the first time, developers will have a formal, expedited process to challenge local government actions that do not comply with state law, reducing the permitting uncertainty that has slowed projects and increased financing costs. The ICC will need to stand up rules and procedures to make this process work.
Finally, the Interconnection Working Group will continue its mandate with stronger authority to address queue backlogs, transparency gaps, and process inefficiencies that slow clean energy deployment across the state. United will remain engaged to ensure the working group can respond quickly to distribution system interconnection delays.
Illinois made a deliberate and calculated choice to invest in the fastest, most affordable tools available to address an energy crisis that is not going away, instead of leaving ratepayers exposed to volatile fossil fuel markets and capacity price spikes. United is committed to ensuring that choice is validated through implementation, working across planning and programmatic activities to ensure CRGA delivers storage, efficiency, and clean generation that lowers bills and strengthens the grid during this transformation period for the state’s economy.
As implementation moves forward, United will continue working with policymakers, regulators, and advanced energy businesses to ensure CRGA delivers on its promise for Illinois customers.