42 November/December 2012 | Renewable Energy Focus

Retailing renewables

About: Vicky Kenrick is a freelance journalist

Some of the world’s leading organisations are actively promoting and investing in the production of renewable energy, as Vicky Kenrick reports.

Online: renewableenergyfocus.com

Huge solar array installed on Minnesota storehttp://tinyurl.com/cjx4wn3

Tesco ethanol biofuel qualifi es for UK ROCshttp://tinyurl.com/dytfl c2

REC installs solar PV system in German Ikea storeshttp://tinyurl.com/bmgn696

More US companies show interest in renewable energyhttp://tinyurl.com/d3kwjmg

GLOBAL INVESTMENT in renewable

energy increased by 30% between 2009 and

2010, reaching levels of $243 billion. This

growth is attributable, not only to the

utility companies seeking to comply with

carbon emission reduction requirements, but also to the

sustainability eff orts of corporate organisations including

large retailers.

In fact, retailers are increasingly adopting renew-

able energy not only to demonstrate their commitment

to sustainability but as a long-term move towards owning

cleaner energy production facilities themselves.

As competition intensifi es to be the greenest brand

within the marketplace, there are increasing numbers of

retailers that have decided to include renewable energy

development as part of their corporate sustainability

strategy. An overwhelming majority of FTSE 500 compa-

nies now voluntarily measure, manage, and publicly dis-

close their carbon emissions; and a collection of hi-tech

solutions, clean technologies and market tools have evolved

in recent years to meet these demands.

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43November/December 2012 | Renewable Energy Focus

The Glendora Sam’s Club, pictured, is part of Walmart’s commitment to accelerate and broaden its sustainability eff orts through solar power.

Driving change through a corporate

sustainability strategy is a constant

challenge. However an impressive 81%

of the CEOs surveyed by The Guard-

ian newspaper recently stated that

sustainability issues are now ‘fully

embedded’ into their companies’ strat-

egy and operations. Many extend this

focus to subsidiaries and supply chains,

specifi cally including the procurement

and investment in renewable energy

sources.

It is clear that organisations which

harness renewable energy, and even

better, generate it, will be strong con-

tenders in the drive to become the

most sustainable businesses across the

globe - retailers and consumer goods

brands are leading the way.

A retail revolutionWithin the UK, leading companies

like ASDA, IKEA, John Lewis and

Marks & Spencer have all set a tar-

get of using 100% renewable energy

by 2015. In the US, Walmart (the par-

ent company to the UK’s ASDA),

Costco, Kohl’s and Macy’s top the

corporate retail solar users in terms

of on-site capacity, according to the

Solar Energy Industries Association (SEIA).

As recently as August this year,

retail giant Walmart marked a special

renewable energy target of its own in

California –its 100th store to be pow-

ered entirely by rooftop solar power

opened in San Diego. It was a signif-

icant step towards Walmart’s plan

to use only 100% renewable energy

sources.

“By using one of California’s great-

est resources – sunshine – and

employing renewable technology with

our California-based partners, we will

continue developing solutions that are

both good for the environment and

good for business,” said Kimberly Sen-

tovich, Senior Vice President of the

Pacifi c Division for Walmart.

The local community in California

is also benefi ting from the company’s

renewable energy projects, Sentovich

added. It recruits up to 50 contractors

per solar rooftop project, while con-

tributing to the 3000 California-based

contract construction jobs through the

solar company, SolarCity.

According to Walmart, its eff orts in

going towards solar power in California

will create 70 million kilowatt-hours

(kWh) of renewable clean power each

year. That’s approximately the same as

powering more than 5400 homes.

SEIA’s study highlighting the top 20

commercial users of solar panels noted

the rapidly falling cost of solar energy

has made it an increasingly appealing

investment for businesses. In terms of

retailers in the US - the average price

of a completed commercial PV sys-

tem has fallen by nearly 14% between

the second quarter of 2011 and the sec-

ond quarter of 2012. So for the major-

ity of retailers it is more cost-eff ective

to install solar than to buy electric-

ity from the local utility, the report

suggested.

But it is not just solar power catch-

ing the eyes of retailers. Walmart also

has an active interest in the produc-

tion and development of wind power -

installing its fi rst large 265-foot-high

wind turbine in Red Bluff earlier this

year. GE’s 1MW turbine is expected to

supply 20% of the local store’s energy

and the energy produced from the

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November/December 2012 | Renewable Energy Focus44

providing 100 percent of the elec-

tricity needs for those stores

In Massachusetts 12 mini wind tur-•

bines power a Walmart store in

Worchester and 27 stores will have

solar panel installations by 2014

26 fuel cell sites in California sup-•

plying energy to local Walmart

stores and Sam’s Clubs

More than 140 solar installations •

across six states, including its 100th

solar installation in California

European driveWhile US giants dominate the top

fi ve corporate retail solar users in

terms of on-site capacity, Swedish fi rm

IKEA is also in there, SEIA notes. As

a step towards using only energy from

renewable sources in its global opera-

tions, IKEA Group is currently invest-

ing in a new wind farm with 30 wind

turbines on Glötesvålen, a mountain in

Härjedalen, Sweden, for example.

This is one of the largest invest-

ments to date in a wind power proj-

ect in the Nordic countries and one of

the largest land-based wind power proj-

ect’s that work has started on so far in

Europe during 2012. The investment

will bring the total number of wind tur-

bines owned by IKEA in Sweden to 39.

When operational, the 90MW

Glötesvålen wind farm is estimated to

generate 220GWh a year, equivalent to

the annual electricity needs of approx-

imately 48,000 homes. Construction

started this summer and the wind

farm is expected to be operational by

the end of 2014 or early 2015.

“At IKEA, we want to take a lead-

ing role in the transition to a low-car-

bon society by only using 100 percent

renewable energy in our global oper-

ations. By only using wind power in

Sweden, it is an exciting and impor-

tant step toward reaching that goal,”

says Steve Howard, Chief Sustainabil-

ity Offi cer at the IKEA Group. “We

will not only be self-suffi cient in elec-

tricity in Sweden, generating enough

to supply all IKEA buildings and oper-

ations in the country, but it will give us

opportunities to supply IKEA stores in

other countries with wind power.”

Meanwhile, another leading Euro-

pean retailer, Sainsbury, have been

working with utility Eon on the instal-

lation of over 69,500 solar panels on

center sites in the United States.”

The commissioning of its 1MW

wind turbine in Red Bluff , brought

Walmart’s total number of renewable

energy projects in operation to 180.

These include:

A 90-megawatt wind farm in West •

Texas, providing 15 percent of

power for over 300 Walmart stores

and Sam’s Clubs

348 stores in Mexico supplied by •

wind power, providing 17percent

of energy needs for Walmart de

Mexico

Fourteen stores in Northern Ire-•

land supplied by wind power

turbine will be purchased under a

15-year agreement with Foundation

Wind power in Silicon Valley.

“We are using every tool in the tool

box as we work toward our goal to

be supplied by 100 percent renewable

energy, and wind energy is an attrac-

tive technology for Walmart,” said

Greg Pool, senior manager of renew-

able energy and emissions at Walmart

and also project manager of the Red

Bluff installation.

“Should the technology at Red Bluff

prove successful, Walmart will evalu-

ate the potential for large-scale tur-

bine installations at other distribution

As well as solar, Walmart has an active interest in the production and development of wind power, installing its fi rst large wind turbine in Red Bluff earlier this year

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45November/December 2012 | Renewable Energy Focus

Feature article

In October, IKEA unveiled a new strategy that will see it “become energy independent and help mil-lions of people live an aff ordable, sustainable life at home”.

Its People & Planet Positive strategy is an integrated part of the company’s long-term growth direc-tion and outlines a new set of goals and actions for delivery up to 2020.

Key aimsPeople & Planet Positive has

three key focus areas:• Becoming energy and resource

independent, which includes pro-ducing as much renewable energy as is consumed in IKEA Group stores and buildings, building on the €1.5bn allocated to wind and solar projects. It also includes improving the energy effi ciency in IKEA Group operations by at least 20% and encouraging suppli-ers to do the same. Continuously

IKEA Group unveils new strategy to be energy independent

developing the IKEA range, mak-ing products more sustainable by ensuring all main home furnishing materials, including packaging, are renewable, recyclable or recycled.

• Inspiring and enabling millions of people to live a more sustainable life at home, off ering products and solu-tions that help customers to save money by using less energy and water and reducing waste. Exam-ples include: converting all light-ing to LED that last for 20 years and use up to 85% less electricity; off ering the most energy effi cient home appliances on the market at the lowest price; creating low price, functional and easy to use solutions for sorting and minimising waste and using less water at home.

• Taking the lead in creating a bet-ter life for the people and commu-nities, which includes supporting the development of good places to work throughout the IKEA Group

supply chain - encouraging suppliers to not only

focus on compli-ance but

also

shared values. It also includes going beyond the immediate reach of the supply chain and helping to support human rights

Transformation“We want to create a better

everyday life for the many people. A better life includes living more sustainably. We have been working towards that goal for many years and have already done a lot, and we are now ready to take the next big step. People & Planet Positive will help us to do that; transforming our business and having a positive impact,” said Mikael Ohlsson, Presi-dent and CEO, IKEA Group.

One of the biggest challenges for the 21st Century is how to address resource scarcity and climate change whilst providing a great quality of life for people around the world, the company notes. “People & Planet Positive will help IKEA Group to play a small but signifi -cant part in meeting those chal-lenges.” In addition to contributing to the quality of life of people and communities where it operates, it will use resources with “the utmost effi ciency” and turn waste into resources.

“Only renewable energy will be used in IKEA Group

operations, while safe chemicals, respon-sible stewardship of forests, water and farmlands will be the base of its supply chain,” the company stresses.

“People & Planet Positive will enable us to take our responsibilities in the supply chain further over the coming years by, for example, only using renewable energy to power our buildings and advo-cating for children’s rights,” said Steve Howard, Chief Sus-tainability Offi cer, IKEA Group.

REF0612_Feature_03 45 04-12-12 11:11:05

November/December 2012 | Renewable Energy Focus46

almost 170 of its stores. This, as a

result, gives Sainsbury’s the title of

Europe’s top solar generator – it can

boast 16MW of solar capacity spread

across 169 of its 572 UK supermarkets.

“This solar rollout is another big

step forward,” according to Justin

King, Chief Executive of Sainsbury’s.

“It makes sense for us – it’s good for

the environment and for our business

and we are actively looking to install

more panels.”

Going undergroundAs well as tapping into renew-

able energy power sources well above

the ground, Sainsbury has also just

announced plans to work alongside

Geothermal International to roll out

an innovative energy solution to up to

100 stores, whereby geothermal energy

will provide heating and hot water.

This project aims to deliver up to

100MW of renewable energy capac-

ity in Sainsbury’s supermarkets by the

end of 2016. Along with large-scale

solar power generation, the geother-

mal project is a key part of Sainsbury’s

20 by 20 Sustainability Plan renewable

energy commitment and to delivering

a fully renewable heat strategy for its

supermarkets by 2030.

“This major solar investment will

make Sainsbury’s a greener grocer and

gives a signifi cant boost to the UK’s

renewable energy sector,” suggested

Head of Campaigns at Friends of the Earth’s, Andrew Pendleton. With the

commercial food sector being responsi-

ble for 20% of the UK’s total greenhouse

gas emissions and more specifi cally the

retail and distribution of food contribut-

ing approximately one third of this; it is

positive to see UK supermarket giants

leading the way in renewable energy

development, he added.

Organisations throughout the UK

(and further afi eld) are increasingly

working alongside renewable energy

developers and installers to reap the

business and environmental benefi ts

of using renewable energy and helping

the UK reduce reliance on expensive

fossil fuels. Furthermore, with new

carbon reporting rules coming into

eff ect in April 2013, organisations need

to consider how they can bring down

their greenhouse gas emissions.

Retailers are also likely to have

more potential for eff ective energy

management than other corpora-

tions. Their infrastructures combined

with how they have effi ciently defi ned

responsibilities and have on-going tar-

gets and monitoring in place provide

an organisational focus to improving

energy effi ciency.

Another way that retailers have

been more effi cient in the move to

renewable energy development and

usage than companies within other

industries is also due to the atten-

tion they give to testing of new tech-

nologies and new approaches to energy

effi ciency. For example, the increas-

ing number of “green stores” are sig-

nifi cantly more effi cient than existing

stores and provide them with a com-

petitive advantage and draw for their

customers as well as the opportunity

to implement renewable energy proj-

ects. Target setting and the deliv-

ery of more energy effi cient processes

is therefore monitored systemati-

cally with the build of each new store,

enabling the ideal platform to develop

renewable energy infrastructure.

The commissioning of a 1MW GE wind turbine in Red Bluff , brought Walmart’s total number of renewable energy projects in operation to 180 earlier this year

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