Wind energy projects are beginning to gather pace. The first tax-based investment in a wind-energy company has been completed using the provisions introduced under the 1998 Finance Act.

The operation of this tax incentive only came into law last month. The project, at Abbeydorney, Co Kerry, is a joint venture between PowerGen Renewables, a subsidiary of the British electricity generating company PowerGen, and Saorgus Energy, an Irish company based in the Innovation Centre at the Institute of Technology in Tralee, Co Kerry.

Under the provisions of the Act, a corporate investor can receive an immediate tax deduction for an investment in shares in a qualifying alternative energy project.

The project at Tursillagh has a projected cost of £13 million (€16.51 million), 50 per cent of which is being funded by investors. The investment in this one was structured by accountant PricewaterhouseCoopers and a number of other schemes are in the pipeline.