Rajasthan’s scorching desert will soon power IKEA’s Indian ambitions. Netherlands-based Ingka Group, the world’s largest IKEA retailer, just made its inaugural foray into India’s renewable energy sector with a major solar power investment transforming barren landscape into clean electricity generation. The move positions Ingka at the forefront of global retailers advancing clean energy in one of the world’s fastest-growing economies, whilst reflecting broader climate strategies embraced by multinational corporations recognizing sustainability as a business imperative rather than an optional corporate social responsibility initiative. With a 210 MWp solar energy project breaking ground in Bikaner, Rajasthan, Ingka aims to bolster sustainability goals whilst supporting clean transitions not only for its India operations but also for wider supply chains and local communities benefiting from employment and technology transfer.
The INR 10 billion (approximately EUR 97.5 million) commitment represents more than a financial investment—it signals confidence in India’s renewable energy infrastructure, regulatory frameworks, and long-term market potential justifying substantial capital deployment in assets requiring decades to achieve targeted returns. This ready-to-build facility, scheduled for operation by December 2026, will produce an annual output of 380 GWh renewable power—far exceeding requirements of IKEA’s growing retail, warehouse, and distribution network across India whilst potentially supplying excess capacity to the grid or corporate power purchase agreements.
Rajasthan Solar Project Anchors Indian Strategy
Ingka’s investment arm launched a subsidy-free 210 MWp solar project in Bikaner, Rajasthan—a region renowned for exceptional solar potential with high irradiance levels, minimal cloud cover, and vast available land unsuitable for agriculture but ideal for utility-scale renewable installations. This ready-to-build facility, scheduled for operation by December 2026, is designed to produce an annual output of 380 GWh of renewable power—far exceeding requirements of IKEA’s growing retail, warehouse, and distribution network across India whilst providing surplus capacity for future expansion or grid sales.
The project stems from Ingka’s pledge to commit INR 10 billion (approximately EUR 97.5 million) to clean energy in India, representing substantial capital deployment signaling long-term commitment to the Indian market beyond retail operations into infrastructure investments supporting the broader business ecosystem. The company’s partner for the venture, IB Vogt Solar India, will direct construction and manage operations for three years, providing local employment to nearly 450 workers during construction and 10–15 permanent jobs after launch for operations, maintenance, and security activities.
Frederik de Jong, Ingka’s Head of Renewable Energy, stated: “This is a milestone acquisition for us—it marks the first renewable energy investment for Ingka Investments in India—a country of utmost importance both for IKEA retail and the IKEA supply chain” connecting furniture manufacturing, logistics, and retail operations. The project’s long-term output will power IKEA’s Indian stores, shopping centres, and logistics hubs, supporting sustainable growth and operational efficiency in line with the company’s climate agenda whilst reducing electricity costs and price volatility exposure from conventional grid power.
Global Climate Commitments Drive Indian Investment
The India solar venture acts as a key extension of Ingka Group’s global strategy to transition fully to renewable energy across its operations by 2030, positioning the company among corporate leaders in climate action and sustainable business practices. Ingka has already invested more than EUR 4.2 billion in wind and solar projects worldwide, with a broader target to commit EUR 7.5 billion to renewables globally by the end of this decade, demonstrating sustained capital allocation toward clean energy infrastructure.
The portfolio now includes 49 wind farms in 17 countries and 26 solar parks across nine countries, creating diversified renewable energy assets generating electricity for operations whilst potentially providing financial returns through power sales or renewable energy certificates. Recently, the group’s climate goals were validated by the Science Based Targets initiative, seeking a 50 percent reduction in supply chain greenhouse gas emissions by 2030 from a 2016 baseline, with an aim for true net-zero by 2050 without carbon offsets. Patrik Antoni, IKEA India CEO, summarised the motivation: “At IKEA, sustainability is at the heart of everything we do… now also an investment in a solar project, we’re inspiring positive change and contributing to a cleaner, more sustainable future for India” beyond commercial objectives.
As part of RE100—a global initiative uniting companies committed to 100 percent renewable electricity—both IKEA and Ingka target renewable energy use in every Indian market, making progress with green-certified stores and 100 percent zero-emission EV deliveries in metropolitan areas including Bengaluru and Navi Mumbai. “Designed with energy efficiency at the core, two of our large-format stores are LEED Gold certified, and we are working towards Platinum certification in Gurugram and Noida,” Antoni noted, indicating a comprehensive sustainability vision across retail, transport, and community engagement.
Economic and Environmental Impact
Beyond supporting its own operations, Ingka’s solar project delivers real benefits to the wider Indian green economy through employment generation, technology transfer, and contributions toward national renewable energy targets under the Paris Agreement and domestic policy frameworks. With output sufficient to power hundreds of thousands of homes annually, the facility strengthens Rajasthan’s position as a leading solar hub within India’s renewable energy landscape, adding capacity to state and national grids whilst demonstrating the commercial viability of large-scale solar installations.
The construction and maintenance phases promise local employment boosts with nearly 450 workers during construction and 10–15 permanent positions afterward, whilst technology transfer from international partnerships helps build long-term knowledge and skills amongst Indian workforce supporting domestic renewable energy sector development. This milestone investment not only cements Ingka’s status as a renewable energy leader among global retailers but also plants seeds for further expansion and technology upgrades in India’s dynamic energy sector experiencing rapid growth driven by policy support and declining costs.
The project’s 380 GWh output and INR 10 billion commitment represent just the beginning of what Ingka describes as a long-term strategy to green its value chain and inspire broader industry transformation where corporate renewable energy procurement drives additional capacity beyond government mandates. As more multinationals adopt similar models, local Indian partners may see surges in investments, job openings, and opportunities for upskilling in solar photovoltaic installation, operations, and related fields supporting ecosystem development beyond individual projects toward sustained industry growth.
Ingka Group’s first renewable energy project in India represents more than a company milestone—it reflects changing paradigms for corporate sustainability and collaboration in Asia’s largest emerging market. By combining INR 10 billion investment, international technology partnerships, and deep sustainability ethos validated by the Science Based Targets initiative, Ingka and IKEA chart courses supporting India’s clean energy ambitions whilst delivering employment and powering transitions toward climate-ready economies. The 210 MWp Bikaner solar project producing 380 GWh annually demonstrates the commercial viability of corporate renewable energy investments exceeding operational requirements whilst contributing to broader national targets under the Paris Agreement. The company’s leadership, supported by robust local partnerships with IB Vogt Solar India, signals new eras for global retailers engaging in India’s green journey—one spark of solar innovation at a time—whilst positioning Ingka amongst corporate renewable energy leaders with EUR 4.2 billion invested globally across 49 wind farms and 26 solar parks pursuing 100 percent renewable electricity by 2030.