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Energy Storage - Procurements and Programs

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Utility-Scale Energy Storage Procurement

The Clean and Reliable Grid Affordability Act (CRGA), signed into law by Governor Pritzker on January 8, 2026, directs the Illinois Power Agency (IPA) to conduct competitive procurements to support the development of new utility-scale energy storage projects across the state. CRGA establishes an initial target of 3,000 megawatts of cumulative nameplate capacity committed to reaching commercial operation by December 31, 2030.

By bringing more energy storage projects online, Illinois moves closer to a reliable and affordable energy future.

The summary below briefly provides key elements of CRGA concerning the forthcoming initial energy storage procurement event required to be conducted on or before August 26, 2026. The information provided below will be updated as more information becomes available.

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Upcoming Procurements

The IPA will conduct an initial energy storage procurement event on or before August 26, 2026 for 1,038 megawatts (MW) of standalone storage. This initial procurement amount will be divided between projects interconnected to MISO and PJM accordingly:

  • 450 MW in MISO Zone 4
  • 588 MW in PJM ComEd Area

Additional energy storage procurements will take place in 2027 and potentially in 2028 as necessary. Please note, requirements for future procurements and the split between projects in MISO and PJM may differ from the initial 2026 procurement.

Procurement Process

For an energy storage project to participate in the IPA’s initial procurement event in 2026, it must:

  1. Achieve commercial operation no later than December 31, 2029*.
  2. Be a standalone storage resource.
  3. Have the ability to operate for a duration of 4 hours.
  4. Be interconnected to MISO Zone 4 or PJM ComEd Area.
  5. Meet various equity and labor requirements, including: compliance with the Minimum Equity Standard and the Prevailing Wage Act, execution of a Project Labor Agreement and a Labor Peace Agreement, and other related reporting requirements.

*This date could be extended to December 31, 2030 per Agency approval.

Under the initial procurement event, developers will submit bids to sell ISCs from their proposed projects under a 20-year contract. These contracts will use an Indexed Storage Credit (ISC) pricing structure established per the Clean and Reliable Grid Affordability Act (CRGA) to calculate the price of the ISCs. Eligible bids are evaluated by the IPA’s Procurement Administrator (NERA Economic Consulting), and procurement results are approved by the Illinois Commerce Commission.

After the effective date of CRGA (June 1, 2026), the Agency anticipates energy storage procurement event information to be primarily added to the Procurement Administrator’s website for such procurements.

The Agency recommends developers and other interested stakeholders stay up to date on details related to future procurements by registering for updates with the IPA’s Procurement Administrator using their information form and selecting “Energy Storage”.

Storage for All Program

CRGA charges the IPA with evaluating and potentially implementing a new Illinois Storage for All program, which would provide incentives to encourage development of energy storage projects colocated with solar projects developed under the IPA’s already well-established Illinois Solar for All program (ILSFA).

The IPA is planning to host a stakeholder feedback process across 2026, beginning in the summer, to begin discussion on the design of this forthcoming program.

More information on this program coming soon! Check the Stakeholder Engagement page or sign up here to receive email updates on the development of this program.

Upcoming Events / Feedback Opportunities

Find information on stakeholder feedback processes for the August 2026 Procurement and the Storage for All program on the IPA’s Stakeholder Engagement page.

Other Storage Initiatives in Illinois

Looking for more information on the Virtual Power Plant (VPP) program or solar + storage rebates outlined in CRGA? These initiatives are under the purview of the Illinois Commerce Commission.

Frequently Asked Questions

Will there be a chance for prospective bidders to provide feedback to the Agency prior to the 2026 procurement?

Yes, the IPA is planning to host feedback opportunities in Spring/Summer 2026 in order to finalize RFP requirements and the contracting mechanism that will be used for the first procurement. A schedule of upcoming feedback opportunities and procurement-related events will be released soon so all interested parties can remain up to date on the activities taking place across the months preceding the initial procurement.

Is there an example of what the contract used for the first procurement might look like that stakeholders can review prior to feedback sessions commencing?

Yes, CRGA instructs the IPA to use the draft contract from the May 2025 Energy Storage Procurement Report released by the Illinois Commerce Commission as a starting place for the contracting mechanism that will be used for the initial 2026 procurement. That draft contract can be found as Appendix A to the May 2025 Energy Storage Procurement Report. 

Where can I find more information on the Indexed Storage Credit (ISC) payment mechanism?

Appendix A to the May 2025 Energy Storage Procurement Report includes several references to the ISC payment mechanism. Included within that appendix are how monthly payments are made (Draft ISC Contract pg. 20-22) and how various portions of the calculation are defined and performed (Draft ISC Contract pg. 73-76).

 

Please note that this version of the contract is not final but will be used as a starting point for the contract that will be finalized for the initial 2026 procurement.  It is thus a useful reference tool for stakeholders looking to learn more ahead of stakeholder feedback opportunities that will be held in 2026.

What will the division of capacity procured from PJM and MISO be for future procurements (i.e., for procurements conducted after the August 2026 procurement event)?

This is not yet determined. The IPA plans to analyze the results of the initial storage procurement, the results of the ongoing Resource Adequacy Study process, and the upcoming Integrated Resources Plan process called for in CRGA in order to properly adjust both capacity levels (towards the cumulative goal of 3,000 MW) and RTO splits for future storage procurements. 

What will be the cadence of future procurements?

This will be determined after the initial 2026 procurement has taken place. Timing of future procurements will necessarily follow timing outlined in CRGA which notes that procurements “shall be conducted in calendar years 2027 and 2028” in order to meet the 3,000 MW goal and that “the Agency shall conduct additional energy storage procurements in 2028, 2029, 2030” if, through the integrated resource planning process set to conclude in 2027, it is determined that more storage resources are needed beyond the 3,000 MW goal set by CRGA.

Will the project requirements for future procurements be the same as the requirements for the initial 2026 procurement?

This is not yet determined. The IPA plans to analyze the results of the initial storage procurement, the results of the ongoing Resource Adequacy Study process, and the upcoming Integrated Resources Plan process called for in CRGA in order to properly adjust requirements for future storage procurements.