RESS Community Benefit Funds

A key condition of all Renewable Electricity Support Scheme (RESS) auctions to date has been the requirement for successful projects to establish Community Benefit Funds, through which they must contribute a minimum of €2/MWh generated to support local initiatives.

Recognising the need for clearer governance and consistency in the operation of these funds, the Department of the Environment, Climate and Communications conducted a consultation in 2024. Following that process, a binding Rulebook for Community Benefit Funds was published in May 2025. Our Energy team explores the key aspects of the Rulebook and what it means for the proper establishment and operation of Community Benefit Funds under RESS.

The Irish government has supported renewable electricity generation projects through a series of auctions under the Renewable Electricity Support Scheme, or ‘RESS’, since 2020.

RESS 5 is the latest iteration, and hopeful projects are currently establishing their eligibility to bid in that auction. The establishment of Community Benefit Funds (CBFs) has been a requirement of each RESS auction, obliging RESS-supported projects to contribute at least €2/MWh to local causes.

It has been recognised that further guidance is required for the proper establishment and operation of CBFs, and following a consultation, the binding Rulebook for Community Benefit Funds (the ‘Rulebook’) was published in May 2025.

Easing administrative burden

CBFs, while beneficial to the community, place an administrative burden on RESS projects, including the risks associated with vague obligations. The Rulebook aims to relax some CBF obligations and increase others, while generally providing more certainty on the requirements.

Responsibility

The maintenance of a CBF has been a duty of each successful RESS project since the inception of the scheme with the RESS 1 auction in 2020. The obligation is set out in the terms and conditions of each RESS scheme. Additional detail had been provided by the separate “Good Practice Principles Handbook”, that was published by the Department in 2021 and which aimed to lay out a “range of principles and guidance for Generators in order to ensure the successful operation and delivery of Community Benefit Funds”.

The Department held a public consultation in late 2024 / early 2025 due to a perceived “need to address some issues that [had] been identified by stakeholders” regarding the operation of CBFs. The outcome of that consultation process has been implemented:

• In the context of RESS 1 – 4, by way of a “supplementary note” from the Department that has the effect of amending the terms and conditions of the relevant scheme. The note reminds readers that each RESS ruleset reserves to the Minister the right to unilaterally amend the terms of the scheme – which is the legal basis for the CBF amendments.
• Regarding RESS 5, by direct incorporation into the rules of the new scheme.

The most significant structural change brought about as the result of the consultation was the replacement of the Good Practice Principles Handbook with the Rulebook.

Changes

The changes made to the CBF obligations include:

• The RESS project must ensure that the CBF is open for applications for funding, and that these applications are decided upon, during the first year following registration of the CBF. The application process must be public, open, fair and transparent. The Rulebook sets out assessment considerations and criteria.
• Regarding Wind or Wind Hybrid RESS projects, a household eligible for Direct Household Payments, located within 1km of the RESS project, shall receive a mandated fixed annual payment of €1,000. Households between 1km and 2km of the turbine will receive an annual payment between €500 and €1,000 calculated under the appropriate formula. An eligible property must be a primary residence at the time the RESS project achieves commercial operation. These include proposed homes on sites with full planning permission for a residential property before the project achieves commercial operation. Where no households are eligible to receive Direct Household Payments, those funds are assumed to be assigned for the other specified categories of the Fund, excluding administration costs.
• It remains the case that up to 10% of the fund may be used for administrative costs during the lifetime of the project. However, the Rulebook introduces a new 20% allowance in the first year to cover the initial set-up requirements.
• The Rulebook has made provision for Small Funds, which allows them to combine their resources with CBFs in close geographical areas to reduce administration efforts. The Small Fund would require the Minister to derogate it as such. Small Funds may also pool payments over a two-year period to allow the build-up of a reasonable sum for distribution.
• An annual report must be submitted to Sustainable Energy Authority Ireland (SEAI) detailing the contributions, outgoings, applicants and disbursements of a CBF for the preceding year. The annual reports shall be publicly available on the SEAI’s register.
• Previously, RESS projects could offset contributions to any local authority-mandated fund against their obligated CBF contributions. This facility has now been removed. This approach is intended to ensure that CBFs are properly ring-fenced for local community benefit – although a RESS project may still enjoy the benefit of any set-off agreement that it had struck with its local authority.

Enforcement and non-compliance

SEAI is the designated body for CBF compliance and maintains the CBF National Register.

SEAI may request further information from CBFs, who must promptly provide the information. If SEAI become aware of any instances of non-compliance, they shall engage in discussions with the CBF to establish a plan of action. If this fails to rectify the non-compliance, SEAI will notify the Minister who can engage in further discussions to resolve the matter. Ultimately, non-compliance may result in the Letter of Offer for the RESS project being withdrawn.

The CBF must have a comprehensive appeals and complaints policy, and the Fund Administrator or RESS Project must use all reasonable endeavours to effectively and efficiently resolve any appeals or disputes related to the administration of the CBF. Where necessary, it may refer the dispute to an independent expert. Eventually, once all avenues have been exhausted, the complainant may submit a complaint to the SEAI.

Comment

The new Rulebook for Community Benefit Funds under RESS has clarified the obligations on RESS projects regarding the operation of CBFs.

Significantly, no amendment has been made to the minimum level of contribution that a RESS project is required to make to its CBF – this remains at €2 per Megawatt hour of electricity generated. Notably, the Rulebook does not impose a blanket obligation on projects that exit RESS early to continue funding the Community Benefit Fund through to the originally intended end date.

While simplified governance requirements apply to Smaller Funds, reducing the burden for lower-value projects, RESS participants must still ensure adequate oversight of their Community Benefit Fund to remain compliant with the new Rulebook.

For more information and expert advice on the proper establishment and operation of CBFs for your RESS project, contact a member of our Energy team.

The content of this article is provided for information purposes only and does not constitute legal or other advice.