Community Benefit Funds under the Renewable Electricity Support Scheme

The community commitments in the Renewable Electricity Support Scheme (RESS) seek to ensure that local communities benefit from Ireland’s energy transition through the Community Benefit Funds (CBFs).

The CBFs are funded by mandatory financial contributions made by renewable energy projects supported by the scheme. These funds support local initiatives and payments to households close to the projects. Communities decide how to spend the funds through a public application process and the decisions taken by the Fund Committees. The mandatory contribution is set at a minimum of €2/MWh for all generation projects to be used for the wider economic, environmental, social and cultural well-being of the local community.

For example, a 10 MW wind farm producing 30,000 MWh per year would contribute around €60,000 to its fund.

CBFs must follow these rules:

• Direct Household Payments: A payment of €1,000 is allocated annually to each household located within a 1 km radius of onshore wind projects, as well as payments under that amount for households between 1 km and 2 km of wind projects.
• Sustainable Development Initiatives: At least 40% of the fund supports local projects focusing on initiatives aligned with the 17 United Nations Sustainable Development Goals. Projects are selected through a public and open process where initiatives are proposed by local clubs, societies and other entities.
• Administration Costs: Up to 10% of the fund may be used for administrative purposes to ensure effective governance and operation of the fund.

From RESS 4, Projects are required to maintain their CBFs for 15 years even if the renewable project exit the scheme. That means, that the same 10 MW onshore wind project will contribute a total of €800,000 in real terms (adjusted for inflation) to their community in 15 years. Considering the amounts of projects under RESS support, communities in the surrounded areas of renewable projects across the country are expected to receive millions of euro during the next years.

Although the annual amount may appear modest, it has the potential to deliver long-lasting benefits to local communities if managed effectively under a well-designed strategy.

The Sustainable Energy Authority of Ireland (SEAI) maintains the Community Benefit Fund National Register, where information is available on all RESS Projects CBFs, including details of their annual contributions, the initiatives they support, and case studies of funded initiatives.

RESS mandates all projects to establish a Community Benefit Fund.

To ensure all parties are fully equipped to engage in this process, we published the CBF Good Practice Principles Handbook in 2021.

After the first RESS auction (RESS 1) reached commercial operation and the first CBFs started funding projects in their local areas, the Department received feedback on aspects that should be clarified or changed in relation to Community Benefit Funds. Accordingly, a public consultation was conducted at the beginning of 2025.

The development of this Rulebook is the result of the lessons learned during these years and the feedback received during the public consultation process.