- Ingka Investments enters Russian renewable energy market under agreement with Solar Systems LLC
- It will acquire 49% stake in 160 MW solar PV capacity in Volgograd, Astrakhan and the Republic of Bashkortostan for RUB 21 billion
- Ingka Investments said this represents 1st large-scale foreign investment into renewable energy in Russia by a non-utility company
Solar Systems LLC, the Russian presence of Chinese solar power company Amur Sirius Power Equipment, has sold a 49% stake in 8 solar PV parks representing a combined capacity of 160 MW to Ingka Investments, the investment arm of Ingka Group that owns IKEA. It marks the foray of Ingka Investments into the Russian renewable energy market.
Solar energy generated by the projects will power all 17 IKEA stores in Russia and some part of the group’s Mega shopping centres in the country. Ingka Investments remarked that this is the 1st large-scale foreign investment into renewable energy in Russia by a non-utility company.
The transaction value is more than RUB 21 billion ($281 million). All the projects under the agreement are located in Volgograd, Astrakhan and the Republic of Bashkortostan regions. On final clearance from the Russian Competition Authority (FAS), Ingka Investments will acquire a 49% stake in Solar Systems’ SPVs —Sunlight Energy LLC, Fifth Project Company LLC and Sixth Project Company LLC. In March 2021, Solar Systems grid connected a 15 MW solar project in Bashkortostan (see Russia: RE Industry & Recent Govt Directives).
“We are looking forward to working with Solar Systems and enabling renewable electricity consumption for IKEA Retail, Ingka Centres operations, as well as the IKEA value chain to reduce our climate footprint in Russia,” said Krister Mattsson, Managing Director at Ingka Investments.
IKEA as a group aims to become climate positive by 2030 which means it wants to lower more GHG emissions than it emits, and investment in renewables is a way to reach the goal. The Ingka Group currently owns and manages over 1.7 GW renewable energy capacity, comprising 2 solar parks, 935,000 rooftop solar panels on IKEA stores and warehouses, and 547 wind turbines in 14 nations.
It now targets to further expand its renewable energy portfolio to more nations especially Russia and Asia Pacific. “With our own wind farms and solar parks, we want to make renewable energy available across our operations,” added Mattsson.
In April 2020, Ingka Group acquired a 49% stake each in 2 solar projects of Copenhagen Infrastructure Partners in Utah & Texas, US (see IKEA Owner To Produce More RE Than Needed).