Pipe dreams of Ireland's green future

The Guardian, Tuesday 16 June 2009

You are correct that Ireland should have a comparative advantage in the production of renewable energy from wind and wave power, and one would expect that renewable energy will comprise a higher share of primary energy supply than it will in many other countries, but there is a huge gap between talking the talk and walking the walk (Emerald Isle plots green revolution, 15 June).
How is this green revolution going to be financed? Irish electricity and gas consumers are already paying over the odds to finance a share of investment in these industries that should be financed by the majority owner - the Irish state - and to recover the costs of wrong-headed infrastructure investments. The government has almost depleted the national pension reserve fund to recapitalise Irish banks, the national debt is growing rapidly and there has to be some doubt about the appetite of external lenders for Irish bonds.
The green begging bowl will do the rounds in Brussels, but any generosity from this quarter will have to be matched by Irish co-funding. Increasingly there is talk of a carbon tax (to accompany the EU's emission trading system), but there is little analysis of the willingness or ability of Irish consumers and businesses to pay much higher energy prices.
Despite all this, the Irish government has a solution under its nose. The Irish state is the majority owner of the dominant, incumbent electricity and gas businesses. Privatising these business would generate around €5bn. This is the scale of financing to which the government will have to commit to realise its green dream. Paul Hunt