Illinois lawmakers seek to launch virtual power plant to lower residents' energy bills

Springfield, Illinois — Illinois lawmakers are back at the capitol for a veto session this week. One item on the agenda, a program that could save you money. It’s called the Clean and Reliable Grid Affordability Act.

Lawmakers said it’s a direct response to rising costs of energy bills. If the act receives the green light, it will create the state’s first so-called virtual power plant program.

A virtual power plant is not your typical building or single power plant. Energy experts said it’s a combination of small battery systems that would actually be installed directly in your home.

Experts said participation in the virtual program could look like the installation of solar panels on your roof and a battery in your basement.

This system will then be paired with your neighbor’s system. After you have about 400 of those systems working together, Barry Matchett with Clearway Energy said, that creates a virtual power plant.

“It all operates as a power plant normally would,” Matchett said. “So, it would turn on and produce power during times when the grid needs it most, and it would turn off and charge the battery when the price of power is very low.”

In addition to the solar panels and batteries, participants would receive money for participating in the program.

Along with other energy options, experts estimate the virtual power plant program could save Illinoisans a combined $34 billion over the next 20 years.

As lawmakers searched for ways to get the ball rolling, energy experts said part of the solution is the creation of virtual power plants.

“These smaller virtual power plants systems,” Matt Van Arkel, with New Leaf Energy, said. “Batteries that are smaller paired with storage at home can be dispatched quickly after the legislation passes and achieve cost reduction on rate payer bills sooner.”

If the act is implemented, experts said residents could see reduction rates in less than a year.

“We believe in about six months this provision of law could come into effect and start delivering savings,” Andrew Linhares, with the Solar Energy Industries Association, said.

But Illinois Republican Senator, Terri Bryant, said these ideas will not lower energy costs. In fact, just the opposite.

“If you’re going to put solar panels on your house or on your property, you get like grant money that’s passed through,” Bryant said. “They run out of money every year, so they want more money for that. That would be an extra line item on your bill.”

Bryant said the state should be able to rely on natural gases as it burns relatively clean. She said while you don’t get energy that’s as clean as solar or wind, it is reliable and its baseload energy.

Bryant said wind and solar are important, but it shouldn’t be the end all, be all.

If the act passes, Matchett wanted to make it clear that this option is completely optional for residents.

Matchett said the amount of money participants would get will be left up to the Illinois Commerce Commission.