Energy Storage - Procurements and Programs

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.

Procurements Under CRGA

The IPA held an initial energy storage procurement event on August 26, 2026 (Summer 2026 Procurement) with a goal of procuring 1,038 megawatts (MW) of standalone storage. On September 1, 2026, the Illinois Commerce Commission (ICC) approved procurement results and contracts were awarded to support the development of 600 megawatts (MW) of new energy storage projects, all located in Illinois.

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

Under the initial procurement event, developers submitted bids to sell ISCs from their proposed projects under a 20-year contract. These contracts 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 June 1, 2026, the effective date of CRGA, energy storage procurement event information will be primarily added to the Procurement Administrator’s website.

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.”

CRGA instructs the IPA to develop an Energy Storage Resources Procurement Plan (ESRPP) which will include details on the Agency’s energy storage competitive procurement events and programs. The plan will address the IPA’s 1) progress toward meeting the 3,000 megawatt procurement goal set forth in CRGA, 2) approach to securing any additional supply obligations not yet contracted in pursuit of the 3,000 megawatt procurement goal, 3) proposed approach to meet the planning requirements established under the Public Utilities Act, and 4) approach to meet the clean energy policy established by CEJA. For clarity, the first ESRPP is expected to cover activities occurring in the 2028/29 and 2029/30 periods.

The draft of the ESRPP will be published by the Agency on June 1, 2027, with public comments on the draft due 45 days later on July 16, 2027. The Agency will review all comments received and update the ESRPP as necessary before filing the plan with the ICC which will begin the docketed proceeding. The schedule defining the post-stakeholder feedback segment of plan finalization, including litigation, ICC review and determination, and implementation of the ESRPP has not yet been defined, with such details expected to be defined and published in 2027.

Following the ICC’s Order, the ESRPP will be summarily implemented. Going forward, CRGA instructs the Agency to update the plan at least every two years.

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 (ILSFA) program.

The IPA will host a stakeholder feedback process across Fall 2026, to begin discussion on the design of this forthcoming program. The Agency plans to kick off the stakeholder feedback process soon, with written feedback questions planned for release in September 2026 and a virtual workshop held in October 2026.

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.

Find information on stakeholder feedback processes for the IPA’s storage procurements and programs on the IPA’s Stakeholder Engagement page.

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.

For more information, please reach out to IPA.Storage@illinois.gov.