IBEC warns Govt must embrace green schemes

The economy could lose out on millions of euro of investment unless the Government backs green energy schemes, employers’ group IBEC warned today.

With private sector funding in Northern Ireland forecast to swell by £500m (€728m) over the next five years under renewable energy projects, IBEC called on the Government to follow suit.

Dermot O’Kane, chairman of IBEC’s renewable energy working group, said Irish companies keen to expand in this area were being forced to look abroad.

“The new scheme in Northern Ireland will benefit rural communities and consumers through increasing security of energy supply and reducing the exposure of business to the volatility of fossil fuel pricing,” he said.

“The Irish Government must introduce similar measures here at the earliest opportunity.”

Under the Renewables Obligation in the north licensed electricity suppliers must provide evidence that a specified quantity of electricity supplied to consumers was generated from renewable sources.

The obligation will be set at 2.5% of electricity supplied in 2005/06 and will increase to 6.3% by 2012/13.

IBEC warned the Minister for Natural Resources Noel Dempsey that unless green energy schemes were promoted companies would continue to concentrate on overseas investment.

Mr O’Kane said the economy could lose out on millions of euro.