Ikea has recently made headlines by announcing a new Power Purchase Agreement (PPA) with a Scandinavian renewable energy company. The PPA will allow Ikea to purchase all the electricity generated by a 50-megawatt wind farm in northern Norway for the next 15 years.
This move is in line with Ikea`s commitment to sustainability and reducing its carbon footprint. The company aims to be 100% renewable by 2020 and has already invested heavily in renewable energy, including solar panels on many of its stores.
But what exactly is a PPA and why is it significant for Ikea and other companies committed to sustainability?
A PPA is a contract between a renewable energy provider and a consumer, such as a company or public entity, to purchase a set amount of electricity at a fixed price over a predetermined period. PPAs are becoming increasingly common as more companies seek to meet their sustainability goals through renewable energy sources.
PPAs provide several benefits for both the renewable energy provider and the consumer. For the provider, a PPA guarantees a market for their energy and a stable stream of revenue, which can help them secure financing for new projects. For the consumer, a PPA provides a long-term, fixed-cost option for renewable energy, which can help stabilize their energy costs and reduce their carbon footprint.
In Ikea`s case, the PPA with the Norwegian wind farm will provide the company with a reliable source of renewable energy for the next 15 years, helping them reach their ambitious sustainability goals while also providing a stable source of energy for their operations.
Ikea is not alone in its commitment to renewable energy and PPAs. Many companies, including Google, Microsoft, and Apple, have already signed PPAs to meet their sustainability goals through renewable energy sources.
In conclusion, Ikea`s new PPA with the Norwegian wind farm is a significant step towards their goal of 100% renewable energy by 2020. PPAs are becoming increasingly popular among companies looking to reduce their carbon footprint and meet sustainability goals, and they provide benefits for both renewable energy providers and consumers. As companies continue to invest in renewable energy and sign PPAs, they help drive the transition to a more sustainable future.
