This study examines the economic, employment and environmental benefits that Illinois could realize by increasing investment in

• renewable energy to 8% of electricity generated in Illinois in 20121, 16% by 2020
• energy efficiency to reduce electricity consumption in Illinois by about 16% in 2020
• combined heat and power (CHP) resulting in 1,570 MW by 2020
• coal-fired Integrated Gasification Combined Cycle (IGCC) resulting in 2,000 MW by 2020

Under this scenario, Illinois’ electricity consumption is projected to remain approximately constant during the 2006 to 2020 period. The energy efficiency portfolio evaluated in this report would reduce electricity consumption, offsetting growth in demand and decreasing overall consumption by more than 28,000,000 MWh by 2020. Electricity generated from renewable energy sources, CHP, and IGCC in the 2006 – 2020 period will diversify Illinois’ electricity generation portfolio, which currently consists of primarily nuclear and
coal-fired generation.

The study uses modeling that allows estimations of both direct and indirect economic impacts from the scenarios under review. The study finds that increasing investment in renewable energy resources, energy efficiency, CHP, and IGCC would increase total economic output in Illinois by $4.7 billion by 2012 and by $18 billion by 2020, and would increase income for Illinois residents by $5.5 billion by 2020. It would also result in the creation of 191,000 new jobs in Illinois by 2020, including:

• approximately 7,800 new jobs by 2012 from renewable energy development, including 1,800 jobs
directly in renewable energy business sectors; and
• approximately 7,400 new jobs by 2012 as a result of improved industrial energy efficiency, including 1,800 jobs directly in industrial sectors.

The study also shows that increased use of renewables, efficiency and CHP could help Illinois make significant progress toward air pollution reductions needed in the next State Implementation Plan (SIP) in order to comply with new federal requirements to reduce power plant emissions of sulfur dioxide, nitrogen oxides and mercury. The study also finds that implementing just the renewable energy scenario would reduce sulfur dioxide and nitrogen oxides pollution by 2012 by the equivalent of four typical mid-size power plants operating today.

The Economic and Environmental Impacts of Clean Energy Development in Illinois