IKEA stores owner to buy stake in 160 MW of solar farms in Russia

Solar PV system. Author: Eleleleven. License: Creative Commons, Attribution-ShareAlike 2.0 Generic.

April 13 (Renewables Now) - Ingka Group, the largest global retailer of IKEA furniture, will invest in the acquisition of a 49% stake in 160 MW of solar farms in Russia.

The group’s investment arm, Ingka Investments, said Tuesday that it has signed an agreement with Solar Systems LLC to take a minority stake in eight solar PV farms in south-west Russia. The total book asset value of the parks stands at over RUB 21 billion (USD 272.8m/EUR 228.6m), the statement reads.

Russia’s competition authority FAS has to greenlight the agreement, which would lead to the first large-scale foreign investment in the country’s renewables by a non-utility company, Ingka Investments said.

The targeted solar farms can generate enough electricity to power all 17 IKEA stores in Russia and part of the IKEA group’s MEGA shopping centres based around the country.

“To support our sustainability goals and contribute to the overall IKEA commitment to become climate positive by 2030, we aim to expand our renewable energy portfolio into more countries, with Russia and Asia-Pacific a priority,” said Krister Mattson, managing director at Ingka Investment.

The Swedish furniture retailer will aim to cut more greenhouse gas emissions than what the IKEA value chain emits, while still growing the business.

At present, Ingka Group owns and manages 547 wind turbines in 14 countries, two solar farms and 935,000 rooftop solar panels on IKEA stores and warehouses -- all for a total of over 1.7 GW, Ingka Investments said.

(RUB 10.0 = USD 0.13/EUR 0.11)

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Sladjana has significant experience as a Spain-focused business news reporter and is now diving deeper into the global renewable energy industry. She is the person to seek if you need information about Latin American renewables and the Spanish market.

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