Rural coastal communities are in line to benefit significantly from offshore renewable electricity projects, according to the Department of Environment, Climate and Communications (DECC).
Under a new framework published by the environment minister, Eamon Ryan, generators of offshore wind will be required to make substantial annual contributions to community benefit funds.
A key feature of the new framework, known as the ‘Community Benefit Fund Rulebook for Generators and Fund Administrators’, is that generators must start making contributions from the early stages of the offshore wind project, i.e., prior to commencing operation.
This means that coastal and marine communities could start to benefit from 2025 and could look forward to receiving benefits for up to 25 years in total.
Coastal communities
Contributions to these funds will be determined by the amount of energy generated, with €2 required to be paid for every megawatt hour (MWh) of electricity generated over the lifetime of the support period.
According to the DECC, given the anticipated high levels of offshore generation, the amounts involved are expected to be substantial – approximately €4 million per year from a typical 500MW offshore wind project, and almost €20 million per year from all projects expected to deploy via the first auction for offshore wind under the Renewable Electricity Support Scheme (ORESS).
The community benefit fund process has been developed following consultation with communities and industry. This has been supported by the participation of the Sustainable Energy Authority of Ireland (SEAI), which will provide the monitoring and compliance of the funds.
This follows on from the November 2022 launch of the first offshore competition under the ORESS. Such auctions in the coming years will procure further offshore wind capacity with the aim of reaching the 2030 target of 7GW.
They are also aimed ensuring that hosting communities continue to benefit from the potential of offshore renewable energy.
Minister Ryan said: “Local coastal and marine communities will play a central role in facilitating and supporting the development of Ireland’s offshore renewable electricity ambitions as a vital component in meeting Ireland’s commitments under the 2023 Climate Action Plan.
“In addition to the jobs, opportunities and business off-shore wind will help generate on-shore, this community benefit fund, built into the off-shore programme, ensures that community life and fabric more broadly can also be enhanced and supported.
“Never has it been more vital that we use our vast offshore wind resource to create renewable energy and ensure the security of our own energy supply.
“The development of our offshore wind energy capacity will eventually eradicate our dependence on imported fossil fuels and bring an unprecedented reduction in CO2 [carbon dioxide] emissions for a climate-neutral future.”
Funding
The rulebook sets out the basis of the working relationship between each generator and the professional fund administrator it must appoint to undertake the implementation of the fund for their respective projects.
It provides details on how each fund must be established and conducted to be properly representative of the local community, including fishers, seafood culture, tourism, the wider blue economy, and maritime heritage.
The fund administrator will undertake the day-to-day operation of the fund on behalf of the local community, while decision-making on the allocation of funds remains within the community itself.