We helped IKEA develop its strategy for renewable energy 12 years ago – and then helped to implement that strategy. Today we provide technical and commercial due diligence on all onshore projects as well as assisting with oversight of construction and operations.
IKEA set itself the very ambitious target to supply 100% of its electricity from clean renewable energy. It has stringent policies on environmental and social standards, and is extremely conscious of its brand being associated with positive action. Having identified consumption worldwide, the task was to come up with a strategy that made quick progress whilst avoiding technology risks. All options were considered, taking into account the extensive property under ownership and the geographic spread of the points of consumption.
We worked closely with a number of departments and directors to help get a clear and common view of the merits and downsides of each option.
The strategy selected by the company was a bold one, based on its strengths and entirely in tune with its ethos. Technology risk would be minimised by working principally in wind power, along with on-site solar PV. Significant investments would be made in wind projects as they produced more MWh per capital spend than any other form of generation. This would be done by supporting developers as a partner to bring projects into operation. The company would take full ownership once the projects were generating but provide security in advance of that.
The implementation of the strategy has been a huge success to date, with the company well on its way to hitting its target. Acquisitions have been made in numerous European markets as well as Canada and the USA. By working to an agreed phased DD scope, we have been able to quickly and reliably deliver appraisals of potential acquisitions to the central investment team, and also the ultimate client - a different Country Management team operating in every market.