Tesco Ireland is to undertake a €2m project that will see a number of its stores retro-fitted with more energy efficient lighting.

The project is the first to avail of the €70m Irish Energy Efficiency Fund, which was established by the Government to help companies undertake energy efficient projects.

The deal will see Irish company DCS Electrical fit seven Tesco stores with LED lighting, with a follow-on commitment to extend the project to 40 more shops at a later date.

The work is expected to create 16 new jobs at DCS Electrical, and could deliver more than €500,000 in energy savings each year for the retailer.

The Government has committed up to €35m to the Irish Energy Efficiency Fund, with the remainder due to be raised from private investors.

Of the funding secured so far, €12.8m has been contributed by British investment firm London & Regional Properties, while €5m has come from the Glen Dimplex Group.