Marybeth Collins
IKEA’s investment division, Ingka Investments, has taken significant steps toward enhancing its renewable energy portfolio in Romania, aligning with both local sustainability objectives and the company’s global climate goals. With recent regulatory approval from Romania’s energy authority (ANRE), Ingka Investments is set to develop a large-scale photovoltaic project in Dâmbovița County with a peak capacity of 247 MW, bringing transformative energy potential to the region.
New Solar Power Project in Dâmbovița County
The solar power plant, located in the Muntenia region near Butimanu commune just north of Bucharest, represents one of Romania’s largest renewable energy projects. Ingka Investments acquired this solar initiative in late 2023, announcing a planned investment of over $216 million and an anticipated project completion date by the end of 2025. The facility, expected to produce enough energy to power approximately 170,000 Romanian households annually, will be developed in two phases through Ingka’s subsidiary, Butimanu Energy. With a grid connection capacity of 223 MW, this project underscores IKEA’s commitment to contributing to Romania’s energy transition and reducing the country’s dependence on fossil fuels.
Existing Renewable Energy Assets: A Network of Wind Farms
This solar project complements Ingka Investments’ existing renewable assets in Romania. The company already operates nine wind farms across the country, with a combined capacity of 171 MW, supporting Romania’s clean energy objectives while expanding IKEA’s role in the renewable energy market. Together, these solar and wind investments create a diversified portfolio of renewable assets that align with Romania’s renewable energy goals, providing Ingka with a strategic foothold in the country’s green transition. Furthermore, Ingka’s renewable assets in Romania contribute to the local power supply chain, supplying energy directly to end consumers and benefiting communities nationwide.
Enhancing Local Supply Chains Through Renewable Energy
One of the most notable impacts of the new solar power project will be its support for local IKEA suppliers. Ingka Investments announced that the annual energy output from the Butimanu solar facility would enable IKEA’s value chain to provide renewable energy to a broader range of local suppliers. This localized energy production is key to ensuring that the company’s extended supply chain operates with a lower carbon footprint, supporting sustainable practices across production processes.
Responsible Forest Management Amid Conservation Concerns
In addition to its renewable energy initiatives, IKEA has a significant presence in Romania as the country’s largest private owner of forests, holding extensive forested areas, including parts of Europe’s last remaining old-growth forests in the Romanian Carpathians. While these forests are essential for biodiversity, concerns have been raised about the environmental impacts of timber sourcing. Greenpeace has called attention to instances where companies supplying IKEA have sourced wood from Natura 2000-protected areas, leading to calls for stricter monitoring and conservation practices. IKEA is urged to ensure that its supply chain aligns with environmental best practices and safeguards Romania’s rich natural resources, emphasizing the company’s responsibility to maintain sustainability across its sourcing and manufacturing processes.
Global Impact: Ingka’s Renewable Investments Beyond Romania
Romania’s renewable energy expansion is part of a broader global strategy by Ingka Investments to enhance IKEA’s sustainability profile. In addition to the Romanian projects, Ingka recently announced an increased stake in the 1.33 GW Golden Plains Wind Farm in Victoria, Australia. This investment will position IKEA as a major contributor to what will become the largest wind farm in the southern hemisphere. Ingka’s 15% share in the project’s second phase reinforces its commitment to securing renewable energy across its retail countries, aligning with the company’s climate-positive goals. Frederik de Jong, Head of Renewable Energy at Ingka Investments, emphasized, “Our 15% stake in Golden Plains Wind Farm Stage 2 highlights our dedication to securing renewable energy for IKEA retail countries and advancing sustainability goals.”
Romania’s Renewable Landscape and IKEA’s Role in a Sustainable Future
Romania’s renewable energy sector is experiencing rapid growth, with the Romanian Energy Regulatory Authority recently approving permits for 39 renewable power plants anticipated to be operational by year-end. IKEA’s contributions, from wind to solar power, highlight the company’s alignment with national and EU environmental goals. These developments not only reduce carbon emissions but also foster energy security, economic growth, and community resilience across Romania.
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