ENERGY firms in Northern Ireland could miss out on a "significant wave of investment" unless more is done to create a coherent energy policy, according to consultancy firm Pinsent Masons.
It said any delay in the application of Electricity Market Reform (EMR) in the north "could weaken interest in domestic assets as international investors fear instability of a changing regulatory environment".
The EMR programme is a UK-wide initiative aimed at stimulating growth in renewable energy infrastructure.
The government estimate around £110 billion is required to ensure the UK is energy secure.
Richard Murphy, a partner in the energy and natural resources group at Pinsent Masons in Belfast spoke to around 100 delegates at Agenda NI's Developing Energy Projects conference in Belfast last week.
He urged the Northern Ireland Executive to set long-term market price signals and help industry deliver energy projects in Northern Ireland with a more "cohesive approach to energy policy".
"There are some innovative and
strategically important projects under way in Northern Ireland," he said.
"We've experienced an uptick in investment, particularly in the energy sector. The sale of Phoenix Natural Gas demonstrated that there is significant appetite at an international level in Northern Ireland assets.
"However, attracting investors of scale who can maintain and improve energy infrastructure requires commitment and clarity."
Phoenix was sold to Australian fund Hastings Fund Management signifies a positive interest in domestic assets. The deal followed Terra Firma's sale of the supply side of the Phoenix gas business to SSE.
"EMR presents significant challenges as well as opportunities for the energy sector. Investors could regard such a monumental regulatory shift as risky, stemming the flow of activity until pertinent decisions about energy policy are made and implemented," Mr Murphy said.
"If we are serious about achieving our 2020 renewable energy targets for example, we need to manage that transition carefully and send early signals to investors if we are
to improve levels of investment from overseas entities to meet such targets."
He said that energy deals such as Mutual Energy's Islandmagee gas storage project and First Flight's 600 megawatt offshore wind project highlighted the appetite for development and innovation in Northern Ireland.
"It's essential that we capitalise on momentum that has built by positioning our assets and expertise as attractive investment opportunities," he said.
"We need to showcase our success and maintain and demonstrate the rewarding nature of the Northern Ireland Energy sector."