Wind farms generated nearly 5% of Illinois’ total energy output in 2014, below the 6.75% target set in the state’s renewable portfolio standard.
The lagging production puts at risk the state goal of 25% renewable energy production by 2025.
Illinois adopted the renewable portfolio standard, or RPS, as part of the Illinois Power Agency Act of 2007. This followed a federal recommendation that states should hold themselves accountable for reaching renewable energy goals to achieve 25% national renewable energy production by 2025. Over a dozen states currently take part in the 25x’25 initiative.
Electricity produced by wind should account for 75% of the goal in Illinois. The state possesses a modest wind resource compared to the great plains, but the established transmission infrastructure allows for more efficient use of the energy than more windy states.
Between two and three wind farms sprouted up each year until 2012, when production stalled due to the indefinite future of a federal tax credit, according to David Loomis, the director of the Center for Renewable Energy at Illinois State University.
“We just kinda fell off a cliff and build none for two years,” he said.
The tax credit that incentivized construction of renewable energy facilities expired, stalling new projects from moving forward and leaving investors to wait and learn the fate of the subsidy.
Despite the ill-fated tax incentive, Loomis said two farms were built in 2015 and a flurry of recent permit activity should lead to new facilities in the coming year.
Illinois also faces unexpected trouble implementing industry regulations intended to hold large power companies accountable for sourcing electricity from renewable facilities. The law requires compliance from companies servicing 100,000 customers or more, such as ComEd and Ameren.
“Provisions of the law didn’t anticipate that residential customers were going to move to competitive suppliers,” said Loomis.
A rise in municipal aggregate utility companies complicates the Illinois Power Agency’s enforcement of production standards. Many towns and cities around the state switched to small third-party energy suppliers, creating numerous new companies that fall below the customer minimum for regulation.
Together, the stymied regulatory enforcement and the shelved federal tax credit have left the fate of the renewable energy goal in jeopardy.
“I think if we don’t fix something, we won’t meet that goal,” said Loomis.
New legislation has been introduced in Springfield by the Clean Jobs Coalition to strengthen the RPS and increase energy efficiency goals. This bill sits alongside others sponsored by Exelon and ComEd, each with their own ideas of what Illinois’ energy future looks like.
“I think we’re going to see something change here in the future,” said Loomis.
“I just don’t know who’s future we’re going to buy into as a state.”
Take a look at the numbers to see how energy production has changed around the country over the years.