IKEA – Erxue Gu – 2022

Goals

In the context of China’s electricity reform, IKEA and its suppliers are exploring how to better participate in the electricity market and achieve green electricity. Therefore, IKEA engaged Erxue Gu to study China’s electricity market trading rules and propose more economical and green electricity solutions for IKEA and its suppliers.

Solutions

Erxue Gu completed the project in three steps.

• Policy research: Erxue Gu investigated China’s electricity market trading rules, demand-response rules and renewable power consumption rules, and analyzed the process and trends of China’s electricity market construction and renewable energy development.
• Analysis of suppliers’ electricity consumption characteristics: Through onsite visits and online interviews, Erxue Gu analyzed the electricity consumption characteristics of typical suppliers of IKEA’s main production categories, including process flow, main electric equipment and electricity use flexibility.
• Proposal of electricity trading and consumption recommendations: Based on national policy requirements and the electricity consumption characteristics of IKEA’s suppliers, Erxue Gu provided recommendations for IKEA and its suppliers to participate in the electricity market and achieve 100% green electricity.

Potential Impact

Erxue Gu provided IKEA and its suppliers with an Electricity Market Research Report and a Corporate Electricity Handbook. The Electricity Market Research Report provides IKEA with a detailed overview of China’s electricity trading rules and supporting measures, and an analysis of future policy directions. The Corporate Electricity Handbook provides suppliers with information on how to participate in the electricity market and how to profit from demand- response, peak/valley differentials and virtual power plants, and suggests ways to achieve 100% green electricity.