IKEA, Ingka & the Rush to Capitalise on Spain’s Solar Boom

Ingka Group, the largest operator of IKEA stores globally, is widely considered one of the world’s most sustainable retailers.

Its investments in things like renewables, waste reduction and energy efficiency have earned it global recognition in recent years, with Sustainability Magazine ranking it 15th in its list of the world’s 250 most sustainable businesses.

Despite Ingka’s vast physical footprint of 411 IKEA stores across 32 countries, it is firmly on track to achieve its goal of net zero by 2050, having already reduced its total emissions by 30.1% since 2016.

This progress has been helped along by Ingka’s commitment to invest US$8.6bn in renewables, battery storage and climate tech by 2030.

This procurement strategy has seen the company build a vast global energy portfolio that includes 49 wind farms and 26 solar parks, adding up to 2.2GW of capacity.

One of the firm’s most recent investments is in Spain, where conditions for solar generation are among the best in the world.

The group's investment arm, Ingka Investments, has this week confirmed its acquisition of two solar parks in the country.

The first, La Oliva, is located in Toledo and is already operational, generating an estimated 51GWh of electricity each year.

The second is located in Murcia and will add a further 55GWh annually once it comes online.

Together, Ingka expects these two sites to deliver 106GWh of renewable power a year.

Investing in Iberia

Peter van der Poel, Managing Director at Ingka Investments, emphasises that these acquisitions are part of the firm’s wider strategy in Iberia rather than an isolated transaction.

"Spain's solar conditions are some of the best in Europe, and I'm proud to share that we have now acquired our first two solar parks there," he says.

He also calls attention to Ingka’s work across Spain’s western border in Portugal, where the company is fitting solar panels onto one of its existing wind farms.

The company describes this process as “hybridisation”, which Peter calls "a smart way to boost output without building from scratch".

Once both these new solar parks and Ingka’s retrofit in Portugal are accounted for, Ingka Investments' renewable production across Iberia will reach 323GWh per year.

"It's an important step in a region where home-grown energy matters more than ever, but we know there is still much more to do," Peter explains.

The context in Europe

These latest investments come during a rather febrile period for Europe’s energy market.

Frederik de Jong, who is Head of Renewable Energy at Ingka Investments, is quick to acknowledge that these investments in renewables are intended to bolster the energy security of both the company and the region.

"At a time when Europe continues to face energy price volatility and supply uncertainty, the projects in Toledo and Murcia reinforce the region's ability to build resilience and strengthen the interconnected energy system," he explains.

Frederik also highlights the fact that Spain's suitability for solar gives the company room to contribute meaningfully to that effort.

Depending on the region, Spain has between 270 to 320 sunny days per year, making solar a sure bet, as well as a huge part of Ingka’s reasoning for its investments across Iberia.

Ingka’s pursuit of sustainability

Though Ingka’s new solar parks are significant investments, they are just a small part of its overall portfolio.

Karen Pflug, the Chief Sustainability Officer of Ingka Group, places the company’s purchases in Iberia within that broader sustainability push.

"Strengthening Europe's renewable energy capacity is essential for both climate progress and long-term stability," she says.

"By expanding our footprint in Spain and creating hybrid wind and solar assets in Portugal, we're helping build a more flexible and interconnected energy system."

She sees this as a question of corporate responsibility as much as commercial logic.

“As a global retailer, we believe it’s important to help build energy resilience and security in the regions where we operate,” Karen adds.

Spain's solar PV fleet already exceeds 32GW of installed capacity, having overtaken wind as the country's largest single power source, and the sector added close to 9GW more last year alone.

Ingka's 106GWh of new annual output is only a small contribution to a market expanding so rapidly, but it is what the acquisitions symbolise that makes them so significant.

With corporate appetite for the energy transition in Spain growing all the time, the future looks promising for the country’s electrification ambitions.