Illinois is addressing transmission bottlenecks that hinder its clean energy expansion by proposing incentives for independent power line projects. State lawmakers and advocates are working on legislation to offer subsidies under the Renewable Energy Credit (REC) program, which previously fueled Illinois’ solar energy growth. This initiative aims to alleviate cost burdens for renewable energy developers and accelerate power delivery to consumers. The proposal emphasizes creating a more adaptable and efficient grid system while responding to the state’s clean energy and economic goals.
How does Illinois plan to fund transmission improvements?
The state’s REC program could become a financial catalyst for merchant transmission lines, allowing developers to sidestep the costly and time-intensive planning processes required for utility-backed projects. Unlike traditional utility projects overseen by MISO and PJM grid operators, merchant lines only require regional grid interconnection and state approvals. Advocates argue that such lines, including projects like the Grain Belt Express and SOO Green, could expedite renewable energy delivery and strengthen the grid’s reliability.
“These [high voltage, direct current] lines can provide important benefits that supplement the [regional transmission organization] plan,” said James Gignac of the Union of Concerned Scientists.
Can competition benefit ratepayers and renewable energy?
Merchant transmission projects, while introducing competition to utility companies, may accelerate clean energy project approvals. Long delays in connecting wind and solar farms to the MISO grid have stalled renewable expansion, but merchant lines could bypass such barriers. Invenergy, the developer of the Grain Belt Express, and SOO Green, a proposed underground cable, stand as key advocates for the legislation. These projects aim to enhance grid connectivity between MISO and PJM, accommodating increasing extreme weather events and renewable energy demands.
“Transmission is essential for taking inefficient coal and gas plants offline and integrating renewables,” said Christine Nannicelli, Sierra Club Beyond Coal campaign representative.
Efforts to expand Illinois’ transmission network align with broader trends seen in MISO’s approval of 24 projects in 2023 and 18 in 2022. However, traditional projects face a decade-long timeline due to bureaucratic hurdles, making merchant lines a faster alternative. By coordinating with federal and neighboring state initiatives, Illinois seeks to set a precedent for addressing grid challenges through innovative policies.
Labor unions and industry groups also support these initiatives, citing economic and employment benefits. For example, the Laborers’ International Union of North America highlights the 1,500 construction jobs tied to the Grain Belt Express. The Illinois Manufacturers’ Association stresses that growing grid reliability will prevent disruptions to industrial operations. A study by the Illinois Power Agency estimates that SOO Green could save ratepayers $178 million annually while adding $414 million in economic benefits.
“This is a shared opportunity and responsibility for economic growth,” said Jeff Danielson of Clean Grid Alliance.
Illinois is considering additional measures like co-locating transmission lines along highways—a practice recently approved in Minnesota. Advocates highlight the symbolic and practical parallels between modernizing the grid and building the interstate highway system. These strategies could reinforce economic resilience and clean energy integration in the Midwest.
The focus on merchant transmission lines reflects Illinois’ commitment to achieving its clean energy goals while addressing energy reliability concerns. As fossil fuel generation phases out by 2045, rapid grid adaptation is critical. While some opposition exists from landowners and utilities, proponents argue that such projects can foster economic growth, lower energy costs, and stabilize the grid. Illinois’ legislative approach could serve as a model for other states facing similar challenges.
The proposed legislation underscores the importance of state-level leadership in overcoming infrastructure obstacles. By enhancing transmission capacity, Illinois aims to balance economic incentives, environmental goals, and energy security, ensuring a sustainable energy framework.
