Clean Energy and Battery Storage Lower Costs; Boosting Grid Affordability

Clean energy is the lowest-cost source of new electricity generation in the United States. On an unsubsidized $/MWh basis, clean energy remains the most cost-competitive form of new generation in the US, with utility-scale wind being the cheapest, and solar as the second cheapest source. Battery storage costs are continuing to decline while the market continues to expand. Battery storage facilities help keep electricity prices low by delivering the lowest cost resources, wind and solar, to the electricity grid when demand is high. Batteries store excess energy generated during periods of low demand and release it to the grid when prices and demand are high, stabilizing the grid and lowering costs. Recent polling by the Conservative Energy Network found that keeping electricity costs affordable is the top energy priority among certain likely general election voters. Increasing the deployment of these low-cost energy systems protects consumers against rising energy costs, boosting affordability of the energy grid.

Clean energy and battery storage projects are also some of the fastest energy sources to build and add to the grid. These projects represent billions of dollars in economic investment and consumer energy cost savings, in addition to thousands of jobs. Deploying more of these low-cost, quick-to-deploy energy sources will reduce energy costs as energy demand rises due to data centers and artificial intelligence.

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I lived in rural Iowa, and they had hundreds [of wind energy projects] and didn't impede the farmer's ability to farm. It's more cost-effective and clean to use wind ... They did it hundreds of years ago,

Karen, a landowner in Peoria County, Illinois.

A study by Aurora Energy Research found that increasing the buildout of battery storage alone by 10 GW across the Midwest and Central US would bring $25 billion in energy cost savings for Americans while boosting grid reliability. Deploying 10 GW of battery storage could power 8 million American homes during peak demand, by capturing excess power and delivering it to the grid when needed most. Battery storage is a natural complement to clean energy as it provides instantaneous dispatchable power.

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As power demand surges, battery storage is one of the fastest and most effective ways to strengthen reliability and lower electricity bills. Grid batteries deliver massive cost savings for families and businesses, while ensuring that the grid delivers power when it's needed most. With more than $25 billion in energy savings at stake, this is a generational opportunity for the Midwest to secure a more reliable and affordable energy future. 

Noah Roberts, ACP Vice President of Energy Storage.

Unfortunately, battery storage deployment is lagging behind, and the cost of inaction is too high to ignore. There are hundreds of battery storage projects waiting in the MISO project queue working through the lengthy interconnection and permitting process. State policymakers have the power to harness the potential of battery storage and release its benefits.

Legislative Solutions in Illinois Could Position State as Battery Storage Leader

In Illinois, adding battery storage capacity to the grid would save billions of dollars for ratepayers in energy and utility bills. Illinois lawmakers can access these benefits by passing the Energy Omnibus bill and deploying 6GW of battery energy storage to "to contain costs for electric customers while managing unprecedented energy demand."

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The fastest and cheapest way to get this additional capacity [for growing demand] for customers is to build battery energy storage projects and build them now. The Illinois legislature is long overdue to pass legislation that instructs the Illinois Power Agency to procure low-cost battery storage projects to save ratepayers money. Experts have determined that 6 gigawatts of storage would save ALL ratepayers billions of dollars a year in direct energy costs and PJM capacity costs. Doing nothing will have a direct impact on ComEd customers – resulting in higher bills and a less reliable electric grid. The energy crisis is happening now, not at some future date. It is time for Illinois' political leaders to lead on behalf of their constituents.

Jeff Danielson, Vice President of Advocacy, Clean Grid Alliance.

We do not have the option to do nothing; permanent setbacks on achieving clean energy goals, sustaining job growth, securing grid stability, and reducing energy bills are at risk. Across Illinois, homeowners and businesses face skyrocketing energy costs, and ratepayers are at risk of even higher costs if clean energy deployment stalls.

The Energy Omnibus bill helps address Illinois' current energy challenges by providing the tools, incentives, and structural changes needed to stabilize energy costs and support the growth of clean energy and battery storage in the state. The llinois Power Agency analysis of the Energy Omnibus bill found that Ameren customers would save "from $5.48/month to $12.15/month by 2030 and $13.82/month to $20.54/month by 2035."ComEd customers would save "from $1.52/month to $2.32/month by 2030 and $7.89/month to $8.52/month by 2035."Adding battery storage and additional wind and solar energy to Illinois' electric grid will save consumers billions of dollars.

As the country declares a national energy emergency, stressing the need for a reliable, diversified, and affordable supply of energy, and as the Department of Energy's Grid Deployment Office launches the "Speed to Power Initiative" to accelerate the speed of large-scale grid infrastructure development, homegrown clean energy and storage must be recognized for what they are: tools that boost reliability, American energy dominance, and affordable energy capacity of the grid, while oftentimes reducing grid congestion, and saving consumers money.

The bottom line is that clean energy and storage can best meet the moment of rising energy demand while reducing energy costs for everyone. By deploying more clean, homegrown energy and battery storage capacity, we can power our communities, strengthen the grid, lower energy bills, and create long-term economic growth across the country.