Ikea Doubles Renewable Energy Investments To Cut Costs

Although House Republicans may have not gotten the memo yet, businesses are flocking to renewable energy as a smart business investment. Ikea already plans on doubling its renewable energy investment to $4 billion by 2020, months after announcing it will pursue renewables to cut costs and protect business from from the volatile fossil fuel market.

“Looking at how quickly we’re expanding and our value chain, we will most likely have to double the investments once more after 2015,” CEO Mikael Ohlsson told Bloomberg News.

A slew of businesses have adopted renewables, precisely because they lower electricity costs. Earlier this year, 19 companies publicly urged Congress to extend a key wind tax credit, because electricity rates “consistently decrease when wind enters the market,” while companies like Walmart pursue solar. Interestingly, even a Wales coal museum has jumped at installing solar panels in order to save hundreds of thousands of dollars on its utility bill.

Despite a battering election year where Republicans held up renewable investment as a so-called failure, clean energy had a record-breaking year. Prices for wind turbines and solar panels have only kept dropping. This and $20 billion in private investment has helped make renewables — particularly wind — a top source of new electricity capacity last year.

5 Responses to Ikea Doubles Renewable Energy Investments To Cut Costs

  1. BillD says:

    I see this on conservative blogs and from conservative funds and relatives. They are so obsessed with Solyndra, that they do not realize that renewable energy is doing great. Solyndra was hurt by rapid decreases in the cost of its product that are good for its former customers.

  2. The concept sounds good, in principle. And investing in true renewable energy is great.

    What really matters, however, is not how much Ikea spends, but how much they cut the total carbon (and social and environmental) footprint of Ikea operations, including goods from extraction and harvest through production and delivery.

    I’d love for Ikea to be a great world leader in decarbonizing, and in restoring biodiversity, on a substantive basis. They seem to have room for improvement.

    “As part of our global ‘IKEA Goes Renewable’ programme, we are committed to heavily investing in making IKEA buildings more energy efficient and use more renewable energy.

    “For example, our most recently built UK based stores in Coventry, Southampton and Dublin have been designed to incorporate measures that will have a major impact on these areas, including … biomass boilers…”

  3. fj says:

    Business people are awful in general — something realized after 9/11 — as it seems they’ve been the ones running the world but a few are stand up and smart and must take the lead if we’re going to survive this thing.

  4. Paul Klinkman says:

    You can’t build an office building in the Boston area that isn’t rated at least LEED Silver. No business wants to move into a bad building these days, so no landlord can get a reasonable rent in the long run on an old, conventional heat-leaker fuel-guzzling building, so no bank will put up the money for a new conventional building.

    If your retail business is brown, or brown with only the slightest tinge of greenwashing, too many customers walk across the street. Ikea wants somebody else’s customers. If solar, wind and energy efficiency costs the same as natural gas, Ikea is going to choose solar every time because they aren’t glue-sniffing stupid, unlike some of their competing retailers.

  5. fj says:

    Ikea seems to know what it’s doing. Situated right next to what used to be New York City’s largest dry dock it was virtually untouched by Superstorm Sandy and served as FEMA disaster HQ amidst the devastation. Reports are that they’ve invested lots in solar and bikes for their employees and are likely the ones to watch as climate change hammers its presence home.