Illinois Commerce Commission Approves 1.58 GW of Renewable Energy Projects

On December 16, the Illinois Commerce Commisssion (ICC) approved the results of the Illinois Power Agency (IPA)'s Fall 2025 Indexed REC procurement event for RECs from utility-scale solar, utility-scale wind, and brownfield site photovoltaic projects in Illinois. Following the ICC approval, contracts were awarded to support the development of 1.58 gigawatts (GW) of new renewable generation from four utility-scale wind projects (1,100 MW) and two utility scale solar projects (488 MW). This action marks another step forward in the state's renewable energy development.

The Agency's procurement administrator, NERA Economic Consulting, issued the Fall 2025 Utility-Scale Wind/Hydropower, Utility-Scale Solar and Brownfield Photovoltaic RFP on behalf of the IPA to procure 2,963,078 RECs to be delivered annually from new utility-scale wind projects, new hydropower projects at an existing dam, or modernized or retooled hydropower projects at an existing dam; 666,666 RECs to be delivered annually from new utility-scale solar projects; and 176,271 RECs delivered annually from new brownfield site photovoltaic projects. The quantity of RECs procured exceeded the target for both utility-scale solar and utility-scale wind, indicating continued growth in statewide renewable energy development. No projects were selected in the Brownfield site photovoltaic category. Additionally, two of the winning projects are proposed to be located at least 50 percent within an Energy Transition Community Grant Area.

The IPA's preliminary analysis shows that the Fall 2025 Indexed REC procurement achieved full market participation, enabling the successful development of new renewable projects throughout the state. Despite recent market challenges, REC strike prices for this event were comparable to Summer 2025 Indexed REC procurement event prices, inching up a tad but still demonstrating the resilience of Illinois' renewable energy market. While the IPA anticipates that REC strike prices may increase in response to changes in the federal renewable energy landscape, the Agency has implemented two mechanisms to help address challenges stemming from recent market volatility, starting with the summer 2025 procurement: a one-time, post-award Annual Quantity Adjustment Mechanism and a one-time, post-award Inflation Adjustment Mechanism. These measures should help ensure some stability and predictability for project developers.

Overall, the success of the Fall 2025 Indexed REC procurement event highlights continued growth of Illinois' renewable energy development. By facilitating new projects and encouraging robust market participation, the IPA continues to remain committed to renewable energy development in the state. The IPA will continue to monitor market trends to ensure the ongoing success of its renewable energy programs and procurements.