POWER BRIEF

Legislative Newsletter

December 2024

A monthly roundup of news and top highlights from the Illinois Power Agency

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TOP INSIGHTS & HIGHLIGHTS

ICC Approves 1.2 GW of New Utility-Scale Wind and Solar Projects

On December 5, the Illinois Commerce Commission (ICC) approved the results of the Illinois Power Agency (IPA)’s Fall 2024 Indexed REC procurement event for Renewable Energy Credits (RECs) from utility-scale solar and wind projects. Following ICC approval, contracts were awarded to support development of 1.2 gigawatts (GW) of new renewable energy generation from five projects: two new utility-scale wind projects totaling 750 MW and three new utility-scale solar projects totaling 450 MW.

All three utility-scale solar projects are proposed to be at least 50% within an Energy Transition Community Grant Area—referring to areas which have experienced or will experience a fossil fuel, nuclear plant, or mine closure. One solar project will be in Illinois’ PJM region, while the other two will reside in the MISO region.

The procurement event’s average winning strike price of $76.98/MWh is up slightly from the IPA’s previous Indexed REC procurement strike price of $73.06/MWh. The strike price represents the revenue that developers expect they will need over 20 years to develop and operate their projects. Increasing strike prices may reflect a range of market factors including inflation, tariffs, interconnection costs, and labor costs.

The 750 MW of utility-scale wind projects being supported through this procurement event constitutes nearly 2.5 million RECs delivered annually. Meanwhile, the Agency’s utility-scale solar REC goal of over 650,000 RECs was exceeded.

While the Agency’s Indexed REC procurement events have been meeting utility-scale solar REC goals, advancement of utility-scale wind REC goals remains a challenge. The IPA is engaging with stakeholders and wind developers to address barriers to new Illinois wind development. This engagement includes exploring post-award REC delivery contract changes for utility-scale wind and utility-scale solar projects to address how recent volatile market conditions have led some projects to experience significant increases in development and construction costs after REC delivery contracts were awarded.

Between July 29 and December 2, 2024, the IPA conducted five workshops to better understand barriers developers face and propose solutions through post-bid contract adjustments. In January 2025, the Agency will release a draft report of its findings for public comment, which will then be submitted to the ICC in a compliance filing in mid-February 2025.

Check Your Solar Project’s Status with the Project Lookup Tool

Constituents can check the status of their solar projects online with the Project Lookup Tool.

Customers participating in the Illinois Shines program who have a Distributed Generation (on-site) solar project can use this tool to view their project’s application status. Knowing the status of a project application can help constituents better understand how close the Approved Vendor is to receiving the incentive payment for the project. If an application is at a different stage than expected, it’s a good time to contact the project’s Approved Vendor.

To find a project’s status, enter just one of the following:

• the Application ID;

• the Disclosure Form ID; or

• the Customer’s Email Address.

To access the tool and for more information, visit the Project Lookup Tool page on the Illinois Shines website.

DID YOU KNOW?

Power Hour: 2024 In Review

In 2024, the IPA hosted seven Power Hour webinars covering a wide range of clean energy topics:

1. Clean Energy Future for Public Schools: Benefits and Challenges

2. Renewable Energy Projects Financing: Distributed Solar

3. Climate Change and Health Equity

4. Prevailing Wage and Project Labor Agreements

5. Tax Incentives for Solar Energy: the 101 on the Inflation Reduction Act

6. Long-Term Regional Transmission Planning, State Initiatives, and the Power Grid

7. Upcoming Illinois Net Metering Changes

From its inception in October 2021 to November 2024, the Agency has hosted 35 Power Hour webinars to help inform policymakers, clean energy companies, energy trade organizations, educational institutions, and the public on topics relevant to them.

The IPA will resume its educational Power Hour webinar series in 2025.

Archived Power Hour webinars can be found on the IPA Events page.

Events and Outreach

IPA Director Attends ICC Resource Adequacy Policy Sessions

On December 19, IPA Director Brian Granahan presented at the ICC Resource Adequacy Policy Sessions in Springfield, Illinois, alongside representatives from ICC, Illinois Environmental Protection Agency (IEPA), utilities, energy storage industry representatives, energy efficiency advocates, and consumer advocates. Sessions discussed resource adequacy issues in Illinois, examining prospective solutions to resource adequacy constraints linked to expected load growth and planned fossil fuel retirements, including energy storage and efficiency measures. Sessions also explored cost implications and proposed policy solutions.

During the policy sessions, Brian presented on two panels. The first—titled “The State of Illinois’ Current and Future Resource Adequacy (RA)”—discussed the state of resource adequacy in Illinois, explored existing policy mechanisms that incentivize clean energy generation in Illinois, and highlighted the purpose and scope of the Resource Adequacy Study produced by the IPA, IEPA, and ICC and to be completed in 2025. The second panel, titled “Examining Electric Energy Efficiency, Utility-Scale Storage, and Customer Costs,” addressed how energy efficiency and utility-scale storage as potential solutions.

IPA Staff Presents at National Consumer Law Center Webinar

On December 3, IPA Deputy Legal Counsel Sarah Duffy presented on a panel titled “Community Solar: Expanding Access and Safeguarding Low-Income Families,” hosted by the National Consumer Law Center (NCLC). The panel explored a new report jointly created by the NCLC and the U.S. Department of Energy (DOE), which examined existing community solar programs and highlighted important consumer protection safeguards for customers.

During the panel, Sarah highlighted consumer protection requirements and best practices for customers of IPA-administered solar incentive programs. Additionally, she discussed several IPA consumer protection initiatives being developed to better protect customers. To view the recording and presentation of this webinar, please visit the NCLC website.

Illinois Shines Program Administrator Presents at HACIA Multi-Cultural Jobs Training Program Webinar

On October 5, Illinois Shines Program Administrator Energy Solutions presented on a webinar for Lewis University students enrolled in the Hispanic American Construction Industry Association’s (HACIA) Multi-Cultural Jobs Training Program. Funded by the 2017 Future Energy Jobs Act (FEJA), the HACIA Multi-Cultural Jobs Training Program helps ensure equity in the clean energy construction workforce by providing opportunities qualified individuals from traditionally underrepresented groups.

During the event, Energy Solutions staff provided key information on the IPA’s Illinois Shines solar incentive program, including how Equity Eligible Persons (EEPs) can find jobs in the clean energy sector and connect with clean energy companies that are hiring EEPs. Energy Solutions also answered general questions about the Illinois Shines program and how the Program supports existing and prospective Equity Eligible Contractors navigating the solar landscape. To learn more, please visit the Illinois Shines website.