Illinois Bets $1B on Battery Storage to Combat Soaring Energy Bills

Illinois lawmakers have passed groundbreaking energy legislation to tackle electricity costs that have surged by one-third statewide over the past five years. The Clean and Reliable Grid Affordability Act represents a bold $1 billion investment in battery storage and grid modernization, with officials projecting it will save consumers over $13 billion during the next two decades.

The comprehensive package includes plans for 3 gigawatts of new battery storage capacity—crucial infrastructure for storing excess renewable energy when production is high and releasing it during peak demand periods. In a historic move, Illinois also lifted its nearly 40-year ban on new large-scale nuclear reactors, building on nuclear power that already supplies more than half the state’s electricity.

The legislation comes as Illinois faces a perfect storm of energy challenges. Federal funding cuts under the Trump administration eliminated nearly $1 billion in clean energy incentives, while power-hungry data centers from tech giants like Meta are driving unprecedented electricity demand. ComEd projects a 40% increase in northern Illinois demand by 2040, largely due to AI and data center expansion.

While ratepayers will see a surcharge starting in 2030, the Illinois Power Agency analysis shows the long-term savings far outweigh short-term costs. The bill also funds home energy efficiency programs, geothermal projects, and EV charging infrastructure. Environmental advocates praise Illinois for leading on climate action during a federal rollback, positioning the state as a model for other regions grappling with rising energy costs and grid reliability challenges.