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Illinois closes bids for 1 GW energy storage procurement
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The Illinois Power Agency closed bidding on its first energy storage procurement on Wednesday, seeking 1 gigawatt of battery storage to meet rising electricity demand. Contracts are expected to be awarded Sept. 4. The procurement is the opening step under the Clean and Reliable Grid Affordability Act, which sets an ultimate goal of 3 gigawatts of battery storage and was signed by Gov. JB Pritzker in 2025. The agency has estimated the law will save Illinois families and businesses a combined $13.4 billion on energy costs over the next 20 years. Solar Powers Illinois called the procurement a major milestone and said the state is on track to have at least 1 gigawatt online by the end of 2029.
The Illinois Power Agency’s first energy storage procurement marks a major milestone in the state’s efforts to make electricity more affordable for everyone,
Solar Powers Illinois
Key takeaways
- Procurement size: The Illinois Power Agency sought 1 gigawatt of battery storage in its first energy storage procurement.
- Award timing: Contracts are expected to be awarded Sept. 4.
- Law and targets: The Clean and Reliable Grid Affordability Act aims for 3 gigawatts of battery storage and was signed in 2025.
- Estimated savings: The Illinois Power Agency estimates the law will save Illinois families and businesses a combined $13.4 billion on energy costs over the next 20 years.
Table of contents
Why Illinois opened a 1 gigawatt procurement
The Illinois Power Agency framed the solicitation as an early step to meet faster-rising electricity demand and to begin delivering the benefits set out in the Clean and Reliable Grid Affordability Act. The procurement seeks 1 gigawatt of battery storage and is described by the agency as the first of several procurements that will build toward the law’s ultimate 3 gigawatts of battery storage target. The CRGA was signed by Gov. JB Pritzker in 2025; the agency has presented the procurement as a way to accelerate capacity additions that are intended to lower customer bills over time.
The agency’s central numbers are explicit: 1 gigawatt for this round, a 3 gigawatt statutory objective, and an agency estimate that CRGA-related measures — including storage, efficiency and virtual power plants — will produce $13.4 billion in combined savings over the next 20 years.
How the award and delivery timeline is expected to run
The procurement closes the competitive window; the Illinois Power Agency expects to award contracts on Sept. 4. An award date is a contractual milestone, not an in‑service date: successful projects will still need to complete development, permitting and grid interconnection before they supply power.
Solar Powers Illinois, a state coalition, praised the move and said the procurement puts Illinois on track to have at least 1 gigawatt online by the end of 2029. That target is a coalition statement of intent rather than a project completion schedule, and the time between contract award and commercial operation commonly depends on site readiness and permitting timelines.
What the procurement means for costs and future rounds
The Illinois Power Agency has estimated that CRGA measures will save Illinois families and businesses $13.4 billion over 20 years. The agency gives that figure as part of the law’s rationale for using procurements to expand storage and related resources.
The procurement is explicitly the first of several the agency expects to run as it moves toward the 3 gigawatt statutory goal. Solar Powers Illinois called battery storage among the fastest and most cost‑effective resources to build and connect to the grid; the coalition said the move will help lower electricity costs. Reaching the full 3 gigawatt target will require follow-on procurements and successful project delivery in multiple stages.
How this procurement could play out
The case for
- If contracts are awarded on Sept. 4 and developers meet schedules, the first 1 gigawatt could begin entering service well before the 3 gigawatt statutory target is needed, helping to relieve peak pressures.
- The Illinois Power Agency’s $13.4 billion estimate provides a fiscal argument for storage, and a successful first procurement could lower costs for later rounds by building developer confidence and supply-chain experience.
The case against
- Awarding contracts on Sept. 4 does not guarantee fast delivery; permitting, interconnection and construction timelines can push project in‑service dates past coalition targets.
- The 3 gigawatt goal requires multiple future procurements and consistent budgetary and policy follow-through; any change in priorities or delays in subsequent solicitations could slow progress.
What to be careful about
- An award on Sept. 4 could be delayed or contested; the Illinois Power Agency’s timetable for awarding contracts is an internal schedule the agency set.
- The Illinois Power Agency’s $13.4 billion savings figure is an estimate tied to CRGA measures and depends on assumptions about project performance, market prices and deployment timelines.
- Deliverability risk: projects will need permits and interconnection approvals before they can be counted toward the end‑of‑2029 coalition target.
The bottom line
The closed bidding marks a concrete first step in Illinois’ statutory push to expand storage. The Illinois Power Agency is seeking 1 gigawatt in this initial round and expects contract awards on Sept. 4; CRGA’s 3 gigawatt target and the agency’s $13.4 billion savings estimate are the policy anchors driving the effort. Success now depends on who wins contracts and how quickly projects can secure permits and grid connections. The agency, the coalition and state lawmakers will all be judged on delivery as the procurement moves from paper to projects.
What to watch
- Watch for the Illinois Power Agency’s contract awards on Sept. 4, 2026, when winners and contract terms should be announced.
- Watch whether projects move from award to operation and whether at least 1 gigawatt of storage is online by the end of 2029, as Solar Powers Illinois said the procurement puts the state on track to do.
- Watch for the agency’s announcement of its next energy storage procurement; no date has been set.
Frequently asked questions
What is the Clean and Reliable Grid Affordability Act (CRGA)?
CRGA is Illinois law signed by Gov. JB Pritzker in 2025 that sets a statutory goal of 3 gigawatts of battery storage and directs state programs, including procurements, intended to expand storage and other measures.
How big is this procurement and when will awards be made?
This solicitation seeks 1 gigawatt of battery storage and the Illinois Power Agency expects to award contracts on Sept. 4, 2026.
What savings does the state expect from CRGA?
The Illinois Power Agency has estimated that CRGA measures will save Illinois families and businesses a combined $13.4 billion on energy costs over the next 20 years.
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