Policy in Practice: Enhancing Wind Farm Development Through Community Benefit Funds
About this good practice
The Community Benefit Fund (CBF) was introduced as part of the Renewable Electricity Support Scheme (RESS) to address the social and economic concerns related to wind farm development in Ireland. The RESS is an Irish government initiative designed to support the development of renewable energy projects and help Ireland meet its climate and energy targets (by 2030 at least 70% of our electricity is targeted to be generated from renewable sources).
A key aspect of the RESS is the requirement for all projects to create a CBF, which supports the broader environmental, social, and economic welfare of the local community. The aim of the fund is to ensure that local communities hosting renewable projects benefit from Ireland’s energy transition.
The CBF Handbook outlines principles such as transparency, inclusivity, and sustainability. The objectives are achieved by:
• Recommending collaborative planning between developers and communities from the early stages of a wind project.
• Promoting inclusive decision-making by encouraging local steering groups with broad representation.
• Requiring that benefit funds (set at €2/MWh minimum) be used for projects with long-term value, like energy efficiency, local enterprise, or education.
This Good Practice highlights how the Irish government is supporting community involvement and benefit sharing through the RESS, ensuring that the transition to renewable energy brings tangible social and economic value to local communities.
Resources needed
A mandatory community benefit fund set at €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, for a 10MW wind farm, the Fund is expected to receive approximately €60,000 annually.
Evidence of success
In 2019, wind farm communities throughout the Republic of Ireland received close to €3.5 million in funding. The most effective community benefit programmes are those that align with locally identified needs where residents take an active role in deciding how funds are allocated. This empowers communities to invest in local development. The five counties that received the highest levels of community benefit funding from wind energy projects: Galway, Roscommon, Tipperary, Cork, and Limerick.
Potential for learning or transfer
This model is highly relevant to other regions aiming to expand renewables while maintaining public trust and community involvement. A core principle of the Renewable Electricity Support Scheme (RESS) is that communities should derive direct benefits from renewable energy projects. The CBF is to be used for the wider economic, environmental, social and cultural well-being of the local community. Key transferable success factors include:
A structured national policy
Clearly defined principles to ensure fairness and transparency
Flexibility in implementation, allowing tailoring to local needs
Strong stakeholder engagement frameworks.
Further information
Good practice owner
You can contact the good practice owner below for more detailed information.
Department of the Environment, Climate and Communications