Ingka Group is tackling the last 5% of its renewable electricity target

07 May Ingka Group is tackling the last 5% of its renewable electricity target

(Oilandgaspress) -– In FY25, Ingka Group, the largest IKEA retailer, matched 94.8% of its annual electricity consumption with renewable sources, through a three-tier model spanning on-site generation, owned wind and solar assets, and energy certificates. Moving forward, the company will continue to focus on increasing energy efficiency, as well as growing the amount of energy it generates, owns and operates itself.

Three sources, one system

The energy transition is reaching a tipping point and transitioning to renewables simply makes business sense. According to the UN, nearly three-quarters of the growth in electricity generated worldwide was from wind and solar. Renewable energy offers lower operating costs in the long-term, new job creation, increased energy security all while decreasing emissions.

From the lights in a store to the conveyor belts in a warehouse, electricity runs through almost every part of Ingka Group’s operations. In FY25, 94.8% of that annual consumption was matched with renewable sources.

Renewable electricity does not come from a single switch. Ingka Group reaches its figures through a combination of generation, ownership, and market mechanisms, each covering a different part of the picture.

On-site generation: Solar panels on store rooftops and carpark shelters supplied 7.8% of total electricity consumption in FY25.
Owned assets: Ingka Group owns and operates 49 wind farms and 26 solar parks across multiple countries, the largest single source at 49.1% of consumption.
Energy Attribute Certificates (EACs): High-quality certificates covered the remaining 37.9%, used in markets where direct renewable sourcing is not yet viable.

The remaining 5.2%

In some markets, renewable electricity is not available at the scale or cost required. South Korea is one example: the policy and pricing conditions needed to source renewable electricity at Ingka Group’s volumes do not yet exist. The company is engaging with regulators and advocacy groups including Climate Group’s RE100 and the Asia Clean Energy Coalition to push for more enabling conditions, while also working to reduce overall consumption.

The other lever is energy efficiency. The less electricity stores and warehouses use, the smaller the gap to close towards 100% renewable electricity sourcing. Across the portfolio, Ingka Group is improving insulation, recovering energy from heating and cooling systems, and running annual energy action plans for its buildings.

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