The largest global IKEA retailer, Ingka Investments has announced its plans to acquire a 49% stake in 8 solar PV parks in south-west Russia. With a total power capacity of 160 MW, these solar parks will be able to supply electricity to all the 17 IKEA stores in Russia along with few of the MEGA shopping centres based around the country.

The total book asset value for the 8 solar parks is over RUB 21 billion (EUR 235 million). This transaction is the first large-scale foreign investment in the renewable energy space in Russia by a non-utility company. Ingka Investments has already signed the transaction agreement with Solar Systems LLC, and it is now subject to approval from the Russian competition authority (FAS).      

Swedish furniture company IKEA aims to become climate positive by 2030, by reducing more GHG emissions than the IKEA value chain emits. It plans to drastically reduce GHG emissions through science-based targets. Moreover, it aims to remove carbon from the atmosphere through natural processes and store it in land, plants and products through better forest and agriculture management within the IKEA value chain. 

Ingka Group has invested EUR 2.5 billion in renewable energy since 2009 and has an installed capacity of 1.7 GW. The company owns and manages 547 wind turbines in 14 countries, 2 solar parks and 935,000 solar panels on the roofs of IKEA stores and warehouses. Meanwhile, Solar Systems LLC was established in 2014 and develops, owns, and operates solar PV parks with a total installed solar energy capacity of 365 MW in Russia.

REGlobal’s Views: The Swedish furniture giant has made significant headway towards its clean energy and zero emission goals. By 2025 the home decor giant is looking to achieve zero-emission home deliveries, with a later goal of using only renewable and recyclable materials, while also becoming ‘climate positive’ coming down the line in 2030.