Irish energy group Airtricity may benefit from a British Government plan to increase its offshore wind energy production by 2020.
The group, which operates electricity-generating wind farms in Ireland, Britain and Europe, is up for sale with a price tag estimated at between €800 million and €1 billion.
British business secretary John Hutton yesterday announced that his government wants to see enough wind farms developed around the coast to power every household in the country.
Analysts predicted that the initiative would benefit the Irish group, and possibly boost its value. However, they said that this would depend on the group's ultimate development pipeline in Britain.
"It could underpin its value more than anything else, but it would certainly benefit it," one told The Irish Times.
Airtricity is already planning an offshore wind farm in the Thames Estuary, and also has proposals for the North Sea. Its founder, Eddie O'Connor, has lobbied the British government to support renewable energy.
Mr Hutton conceded that his government's plans would result in consumers paying more for electricity and that they would "change the nature" of Britain's coast.
However, he said the plan was designed to encourage a switch to low carbon energy in an effort to combat global warming, which he warned was not "going away".
The Irish National Offshore Wind association yesterday welcomed the British proposals, but said they were a further indication of how the Republic was falling further behind other EU countries.
The group said a Government target of having one third of energy needs met from renewables by 2020 would be missed unless the Republic followed suit and provided supports for offshore wind energy.
Last month, the association said it would like to see the Government invest €800 million in the national electricity grid to support offshore developments by its members. These are valued at €4 billion. It also wanted a guaranteed tariff for offshore wind-produced power.
Airtricity spokesman Torben Andersen said similar initiatives in Germany had saved the taxpayer money. He said offshore wind power was becoming a mainstream source of electricity.
