Illinois Commission Approves $1.1 Billion Renewable Energy Procurement Plan

The Illinois Commerce Commission on July 18 approved $1.1 billion to authorize Illinois Power Agency (IPA) to procure new renewable generation in Illinois over a two-year period under the 2022 Long Term Renewable Resource Procurement Plan, or LTRRPP. The program will provide a minimum of 25 percent of total incentive to projects located in environmental justice communities. The plan is required under the 2021 Climate and Equitable Jobs Act, which sets a goal for a decarbonized power grid by mid-century.

The LTRRRP has approved six procurement blocks under its Adjustable Block Grant Program adding three more categories. This program is designed to procure renewable energy credits from distributed and community renewable generation projects. The categories include Small Distributed Generation, Large Distributed Generation, Community Solar, Public Schools, Community-Driven Community Solar, and Equitable Eligible Contractor Categories. The approved amount will be utilized in supporting these categories.

Among the key provisions, the new plan includes equity considerations as mandated by the 2021 law. As part of the Illinois Solar for All program designed to foster equitable access to solar, new enhancements including broader use of self-reporting of income, will lower barriers and improve participation. Prior to submitting the next procurement plan, IPA is required to investigate whether self-attestation helped increase participation and explore the possibility of widening the use of the process for income verification of residential customers for subprograms under Solar for All. The program will also provide funding for community based groups and qualifying organizations for promotion of improved enrollment of customers with better coordination and communication.

The IPA plans to update its processes for vendor registration and develop guidelines and handbooks for better understanding of consumer protection, solar marketing and distribution. The commission also directed IPA to develop a “self-direct program” to comply with the renewable portfolio standard through which eligible customers can purchase renewable energy credits from utility-scale projects via long-term agreements. This would allow customers with a peak demand of at least 10 megawatts to qualify for a credit for certain bill charges imposed to support the standard for utility-scale renewable energy projects.