Illinois Moves Forward with More Than 1 GW of New Battery Storage

Illinois is taking a major step toward expanding the role of battery energy storage in its electric grid.

On August 26, 2026, the Illinois Power Agency will conduct the state’s first major utility-scale energy storage procurement. Through this competitive process, Illinois plans to support the development of 1,038 megawatts of new standalone battery storage across the state.

The procurement represents the beginning of a much larger effort. Under the Clean and Reliable Grid Affordability Act, Illinois established an initial goal of securing 3,000 megawatts of new energy storage capacity scheduled to reach commercial operation by the end of 2030.

What Is an Energy Storage Procurement?

In this context, procurement does not mean that Illinois is directly purchasing batteries or constructing the projects itself.

Instead, energy developers propose qualified battery-storage projects and submit competitive bids to the Illinois Power Agency. Selected projects will enter into 20-year contracts for what are known as Indexed Storage Credits, or ISCs.

These long-term contracts are designed to provide an additional and more predictable revenue source for qualifying projects, helping developers secure financing and move projects from planning into construction. Eligible bids will be evaluated by the IPA’s Procurement Administrator, with the final results subject to approval by the Illinois Commerce Commission.

Simply put, Illinois is saying:

The state needs more energy storage. Developers with qualified projects can compete for long-term contracts that will help bring those projects online.

Where Will the Projects Be Located?

The initial 1,038-megawatt procurement will be divided between the two regional electricity markets serving Illinois.

A total of 588 megawatts will be reserved for projects connecting within the PJM ComEd area, while 450 megawatts will be reserved for projects connecting within MISO Local Resource Zone 4.

This division creates opportunities for storage development across northern Illinois as well as portions of central and southern Illinois. Future procurements are expected to occur in 2027 and potentially in later years as Illinois works toward its 3,000-megawatt target. The size, location and requirements of those future procurements may differ from the initial 2026 event.

Which Projects Can Participate?

Projects must meet several important requirements to participate in the initial procurement.

A qualifying project must operate as a standalone energy-storage resource and be capable of continuously discharging electricity for at least four hours. It must connect to either MISO Zone 4 or the PJM ComEd area and reach commercial operation by December 31, 2029, unless the Illinois Power Agency approves an extension through December 31, 2030.

Participating projects must also meet applicable labor, prevailing-wage and equity requirements. These include requirements involving project labor agreements, labor peace agreements and Illinois’ Minimum Equity Standard.

These standards demonstrate that the procurement is not solely focused on adding capacity. Illinois is also connecting its energy-storage expansion with workforce development, equitable access to clean-energy employment and strong labor protections.

Why Does Illinois Need More Battery Storage?

Electricity must traditionally be generated at nearly the same time it is consumed. Battery-storage systems help change that equation by allowing electricity to be stored and delivered later when it is needed most.

As electricity demand changes throughout the day, batteries can charge during periods when more power is available and discharge during periods of higher demand. This flexibility can help the grid respond to changing conditions, make better use of renewable generation and support long-term reliability.

Storage is becoming increasingly important as Illinois adds more renewable energy, prepares for rising electricity demand and works to modernize an electric grid that was not originally designed around today’s energy needs.

By creating a competitive pathway for more than one gigawatt of new storage, Illinois is moving battery-storage development from a long-term policy objective toward active project deployment.

Whats Next?

The procurement is being conducted through a two-part qualification and bidding process.

Under the current schedule, qualified projects can begin submitting the second portion of their proposals on July 31, 2026. Final project materials, excluding price bids, are due August 12. Developers will submit their price bids on August 26, and the Illinois Commerce Commission is scheduled to make a decision on the procurement results on September 1.

Contracts are currently expected to be executed by September 4, although the procurement schedule remains subject to revision.

The winning projects will still need to complete the remaining stages of development, including interconnection, permitting, engineering, financing and construction, before beginning commercial operation.

A Growth Opportunity for Illinois

Illinois’ first energy-storage procurement could create meaningful opportunities for developers, communities, energy investors and property owners.

Utility-scale battery projects require suitable land, access to electrical infrastructure and the ability to successfully navigate local zoning and permitting requirements. As the state moves toward its 3,000-megawatt goal, identifying and responsibly developing appropriate sites will be an important part of the process.

Not every proposed battery project will receive a contract, and securing site control alone does not guarantee that a project will ultimately be built. However, the procurement creates a clear market signal: Illinois expects battery storage to become an increasingly important part of its energy future.

Enterprise Energy works with property owners, communities and industry partners to responsibly develop solar and battery-storage projects throughout Illinois and the Midwest. As this new market develops, collaboration between landowners, developers, utilities and local governments will be essential to turning Illinois’ storage goals into reliable, operational infrastructure.