Sweden - Renewable Energy: Ikea wants all its stores using only renewable energy by 2020 - Invests euro3 billion

Bloomberg News Group, reports that IKEA the world's biggest furniture retailer, will double its investment in renewable energy to euro 3 billion ( US 4 billion)  by 2020 as part of a drive to reduce costs as cash-strapped consumers become more price sensitive.

The additional spending on projects such as wind farms and solar parks will be needed to keep expenses down as the company maintains its pace of expansion, Chief Executive Mikael Ohlsson said in an interview in Malmo, Sweden.

"I foresee we'll continue to increase our investments in renewable energy," said Ohlsson, who plans to step down this year after 3 1/2 years at the helm. "Looking at how quickly we're expanding and our value chain, we will most likely have to double the investments once more after 2015."

Ikea plans to get 100% of the energy consumed at its stores and by subcontractors from renewable sources by 2020. The Swedish company owns 250,000 solar panels, mainly in the U.S., and invested in 126 wind turbines in northern Europe to cover 34% of its energy consumption.

Ohlsson said the retailer will have opportunities for "strong growth" in Europe for "many years to come" because many customers still do not have an Ikea store near them.

EU-Digest