In Illinois, the reliability of the power grid is under scrutiny following a series of transformative energy reforms and increasing electricity demands. The state faces potential challenges with electricity supply, including higher costs and the possibility of rolling blackouts if preventive measures are not taken.
Experts from various sectors, including energy reform architects, regulators, and renewable energy professionals, caution that the state might experience significant price hikes and electricity shortages unless strategic actions are implemented. “If we don’t continue finding other ways of energy – making sure we can store it in some way – we’re going to see that supply and demand kind of thing,” Rep. Barbara Hernandez, a Democrat from Aurora, emphasized in an interview with Capitol News Illinois. “We’ll see a lot of demand, but the supply will not be there and it’s going to create a lot of blackouts in our communities. But also, our families are going to be paying the price and we’re going to see an increase in utilities.”
The state’s energy landscape is influenced by several factors. The burgeoning number of data centers demanding energy, the deliberate decline of the fossil fuel industry, and delays faced by regional grid operators in integrating renewable energy sources are all contributing to the strain on the power grid.
Illinois’ ambitious Climate and Equitable Jobs Act (CEJA) of 2021, aimed at decarbonizing the electric grid by 2045, is not progressing as swiftly as planned in terms of bringing renewable energy online. “We in Illinois are behind on our goals for renewable generation,” stated Sen. Bill Cunningham, D-Chicago.
As a response, legislators are urgently seeking solutions to ensure electricity remains reliable and affordable. A critical legislative session in early January may set the stage for vital energy policy debates with lasting implications.
The CEJA, passed in 2021, represents a bold step toward eliminating fossil fuels while bolstering the economy. However, Illinois is grappling with challenges in meeting renewable energy targets amid an energy industry pivot. Coal-fired electricity, which once constituted a significant portion of the state’s energy mix, has seen a marked decline, dropping from 46% in 2009 to 15% in 2023.
To bridge the energy gap left by fossil fuels, CEJA incentivizes investment in wind and solar energy. However, there is a looming concern that the funds allocated for this transition may fall short. The Illinois Power Agency (IPA), responsible for purchasing renewable energy, warns of a potential budget shortfall driven by rising costs and increased demand.
The state’s renewable portfolio standard (RPS) aims for 40% of electricity sales to come from renewable sources by 2030. Yet, as of October, this goal is not on track. With projections indicating a $3.13 billion shortfall by 2039, officials are exploring legislative measures to address funding issues, including adjustments to procurement strategies and budgets.
Energy storage presents another critical avenue for ensuring a steady electricity supply. Renewable sources like solar and wind are inherently intermittent, creating mismatches between production and demand. Proposals are being considered to incentivize large-scale battery storage solutions, both at consumer and power plant levels, to stabilize energy availability.
Both Rep. Hernandez and Sen. Cunningham have introduced bills advocating for energy storage developments, seeking to integrate storage solutions into existing systems and treat them with similar importance as renewable energy projects.
The process of transmitting electricity and the regulatory bodies overseeing this process add another layer of complexity. Grid operators like PJM Interconnection and the Midcontinent Independent System Operator (MISO) face significant backlogs in approving new generation projects, complicating the timely rollout of renewable energy initiatives.
A report from Lawrence Berkeley National Laboratory highlights that projects are experiencing extended wait times to connect to the grid, averaging nearly five years. This delay is exacerbated by a surge in interconnection requests and infrastructure upgrade requirements.
Capacity auctions, which ensure sufficient electricity generation to meet demand, have resulted in unprecedented price increases. In PJM’s territory, capacity prices have surged, impacting customer bills significantly.
Addressing these intertwined challenges requires a multifaceted approach, including legislative action, infrastructure development, and financial strategies to ensure Illinois can meet its energy needs sustainably and affordably in the years to come.
Original Story at www.wspynews.com