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What Illinois can learn from Texas (Updated)

Tuesday, Aug 19, 2025 - Posted by Isabel Miller

* WMBD

Illinois lawmakers held a virtual committee meeting to discuss the increased energy prices, and the resulting conversation doesn’t leave a bright future for the state.

Ameren prices across Illinois have gone up an average of $46 per month since June 1, according to the Illinois Environmental Council. From the same folks, ComEd prices only went up $8 per month. […]

The biggest issue identified was data centers. These large buildings power AI technology, requiring an immense amount of power. A spokesperson for ComEd said he’s had requests from data centers that could take gigawatts worth of energy off the grid. […]

Other ideas discussed during the committee include battery storage, additional nuclear power plants and legislation that would require data centers to build their own power plants.

* Illinois isn’t alone here. Electricity costs are spiking nationwide. NPR

Across the country, electricity prices have jumped more than twice as fast as the overall cost of living in the last year. That’s especially painful during the dog days of summer, when air conditioners are working overtime. […]

Power-hungry data centers have been popping up all over, to serve the boom in artificial intelligence. The Energy Department projects data centers and other commercial customers will use more electricity than households for the first time ever next year. That’s a challenge for policymakers, who have to decide how to accommodate that extra demand and who should foot the bill. […]

The soaring price of natural gas is also pushing power prices higher. More than 40% of electricity is generated using natural gas. As more gas is exported as liquid natural gas, the competition from foreign customers is driving up the price utilities have to pay here at home. […]

The Energy Department says the cost of gas used to generate power jumped more than 40% in the first half of this year compared to 2024. Another 17% increase is expected next year.

[Note from Rich: That story belies the currently widespread claim that natural gas will solve the affordability problem.]

* So, what lessons can Illinois take from Texas? Invest in battery storage. Bloomberg earlier this year

“Drill, baby, drill” may be Texas’s unofficial motto, but “store, baby, store” is becoming more accurate.

The Lone Star State may be the heart of America’s oil and gas map, but it’s quickly becoming the biggest installer of a technology key for renewables development: battery storage.

Last year, some 4 gigawatts of battery capacity — enough to power around 3 million homes — switched on in the state, besting the pace of similar projects in California for the first time. Before Donald Trump imposed 125% tariffs on key battery market China, Texas was set to add more than double the state’s total storage capacity in 2025, according to a Bloomberg Green analysis of federal energy data. […]

Big batteries are addressing some of the biggest issues facing the electric grid that now has the most renewable capacity in the nation. On the supply side, they can hold the glut of wind and solar power generated across the state. On the demand side, they are helping meet the surging needs of new residents and a growing number of electric vehicles and server stacks in data centers.

* Inside Climate News last month

Last year, the risk of grid emergencies during the summer peak risk hour ending around 9 p.m. [in Texas] was 16 percent. This year, [the Electric Reliability Council of Texas] reports, it’s fallen to less than 1 percent. […]

The addition of more than 9,600 megawatts of capacity to the state’s grid since last summer, coupled with conservative operations and reliable management, has produced this result, [ERCOT CEO Pablo Vegas] said at an ERCOT board of directors meeting this week.

There’s more solar and batteries on the horizon. The bulk of interest in ERCOT’s growing queue of generation interconnection requests comes from the two renewable energy sources, Hobbs said. Of the roughly 400 gigawatts of capacity accounted for in those requests, about 40 percent each are batteries and solar. About 10 percent are wind and a little less are gas.

* Rhythm Energy Blog

When demand spikes, electricity prices can soar. Battery storage helps smooth out these spikes by releasing stored energy during high-cost periods. That stabilizes wholesale prices and protects customers from extreme rate swings, especially in volatile seasons like summer.

Texas weather can be unpredictable, and that puts strain on the grid. With battery storage acting as a fast-response energy source, the grid has a better chance of staying online when other power sources fail or fall short.

This isn’t to say Texas is immune to rising energy costs altogether. Trump Administration cuts to federal tax credits for solar and wind may hinder renewable energy growth. But the state is showing that storage can help tame both prices and reliability risks.

* Back to Illinois. Canary Media in June

Supporters of a major clean energy bill that fell short in the final days of Illinois’ legislative session are licking their wounds and trying to figure out what went wrong — and what comes next. […]

The bill would have made Illinois one of a number of states offering subsidies for battery storage on the grid, with the goal of spurring 6 gigawatts of storage by 2030. Solar industry leaders enthusiastically backed the bill, seeing it as a way to build on the solar boom sparked by the two previous state laws, by facilitating solar-plus-storage projects.

Solar and batteries may also be the nation’s best bet to quickly meet growing electricity demand, as equipment backlogs slow down plans to build gas-fueled power plants. ​“The only resource that we believe can [be deployed] in a time frame of a few years is energy storage,” said Andrew Linhares, the Solar Energy Industries Association senior manager for the Central U.S. ​“And of course, pairing it with solar is by far the cheapest new generation you can bring online.”

…Adding… Illinois Industrial Energy Consumers…

“While Texas is a deep red state, it is also the greenest state, developing and deploying the largest battery and renewable energy fleet without foisting costs on ratepayers in the form of state subsidies and hidden taxes on electric bills.  Additionally, solar industry representatives confirmed that solar generation no longer needs federal tax credits to be competitive.  In other words, if lawmakers promote an energy market without special interest mandates, the state can take great strides towards an energy policy that is affordable, reliable and sustainable.”

* More…

    * Rhythm | What the Battery Storage Boom in Texas Means to You and the ERCOT Grid: When demand spikes, electricity prices can soar. Battery storage helps smooth out these spikes by releasing stored energy during high-cost periods. That stabilizes wholesale prices and protects customers from extreme rate swings, especially in volatile seasons like summer.

    * Texas Tribune | Hundreds of old EV batteries have new jobs in Texas: Stabilizing the power grid: East of San Antonio in Bexar County, 500 electric vehicle batteries at the end of their automotive lives will soon be repurposed to provide energy storage for Texas’ electric grid, a California company, B2U Storage Solutions, announced last week. The batteries, housed in 21 cabinets the size of shipping containers, create a second life for the technology made from critical minerals, including lithium, nickel and cobalt, for another eight years, said Freeman Hall, co-founder and CEO.

    * Chron | Energy company unveils 100MW South Texas battery storage facility: Yet another battery storage facility is operational and adding energy capacity in Texas. Apex Clean Energy, a Virginia company that has already planted seeds in the Lone Star State, announced this week that its 100-megawatt (MW) battery energy storage system (BESS) in Hidalgo County is up and running. […] Texas is ranked second in the nation behind California in battery storage; as of September, the state had about 4,832 MW of energy inside batteries.

    * Bloomberg | How Big Batteries Could Prevent Summer Power Blackouts: When power demand peaked around 4:30 in the afternoon, almost half of the electricity on the grid was coming from renewables, according to the energy analytics platform GridStatus.IO. As the sun set, battery banks that had been soaking up electrons in the heat of the day stepped up to cover 8% of demand, keeping power flowing.“Batteries are very good at handling these types of events,” said Andrew Gilligan, director of commercial strategy at Fluence Energy Inc., a battery developer with three storage sites in Texas. “Things have gotten a lot better than a couple years ago.”

       

11 Comments »
  1. - New Day - Tuesday, Aug 19, 25 @ 1:06 pm:

    Illinois ratepayers are getting hammered now. The time to move on storage is now…in the veto session. We’re paying more now because we didn’t do anything for the last couple of years on this. Texas didn’t wait and they are seeing the savings - both to the grid and their rates. The longer we wait, the more consumers will suffer.


  2. - ArchPundit - Tuesday, Aug 19, 25 @ 1:13 pm:

    Agree with New Day. Illinois needs to clear the way for battery storage and also protect its water sources from data centers.


  3. - Three Dimensional Checkers - Tuesday, Aug 19, 25 @ 1:17 pm:

    === Before Donald Trump imposed 125% tariffs on key battery market China===

    I think this was the most important clause here. Can we catch up to Texas with the tariffs and domestic production of batteries lagging behind China?


  4. - sulla - Tuesday, Aug 19, 25 @ 1:23 pm:

    ERCOT also built a bunch of new transmission lines across Texas that helped them connect additional wind and solar projects. They increased generation as well as storage.

    Battery storage is certainly a piece of this puzzle, but we also need transmission lines, substations and all manner of other energy investment if Illinois is going to remain competitive economically.


  5. - New Day - Tuesday, Aug 19, 25 @ 1:29 pm:

    “Can we catch up to Texas with the tariffs and domestic production of batteries lagging behind China?”

    No. We will never catch Texas. That’s not the point. But Texas is showing that with serious deployment of storage, consumers can be protected from the extreme price spikes of the markets.


  6. - FSW - Tuesday, Aug 19, 25 @ 1:53 pm:

    I do not know anyone, my family included, that has seen ONLY a $46 increase from Ameren. It has been a bitter topic of conversation in the Spfld area for over a month now. Most people I know that are Ameren customers have seen a minimum of 50% increase and my family’s July bill was over a 100% increase. Thank goodness for level pay, but when that gets readjusted in a few months we have no idea how that will impact our monthly bill. Please let the GA figure out something, anything to help with this situation.


  7. - Ben - Tuesday, Aug 19, 25 @ 1:56 pm:

    These AI data centers are obviously totally unsustainable for the power grid as things are. With no changes not many more can be built. AI is soul deleting trash anyway.


  8. - Thomas Paine - Tuesday, Aug 19, 25 @ 2:06 pm:

    I feel like Pritzker did a lot to recruit data centers to come to Illinois with much fanfare, without ensuring that those datacenters had enough juice to operate.

    I don’t know how much revenue those data centers are generating for the state, or whether they produce any jobs, but it seems like “data storage” is a service that ought to be taxable, and should be taxed in order to meet the infrastructure load the data centers create.


  9. - Blue Dog - Tuesday, Aug 19, 25 @ 2:24 pm:

    Let’s keep sending southern Illinois coal overseas. let’s pass sb40. governors own. and this one owns high electric bills.


  10. - Candy Dogood - Tuesday, Aug 19, 25 @ 3:17 pm:

    ===Power-hungry data centers have been popping up all over, to serve the boom in artificial intelligence. ===

    Such is the tradeoff for AI generated babies inserted into popular films portrayed as the main character. The cost to my pocketbook and to our environment is clearly worth it.

    ===Let’s keep sending southern Illinois coal overseas. ===

    I really enjoy the spirit of “we haven’t done anything to meaningfully address climate change for 4 decades, so why start now?” comments.

    Tell me, does the Governor individually own the mass extinction(s) or do you get a part of that too?


  11. - JLW - Tuesday, Aug 19, 25 @ 3:44 pm:

    Texas did not ask ratepayers to spend billions of dollars on their electric bills to incentive storage. Why are we buying the idea that increasing bills by paying incentives to storage developers will lower bills?


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