More Than Just a Light: Solar Power Expands Clean Energy Access and Fuels Economic Growth

TEMPO.CO, Jakarta - The Ministry of Energy and Mineral Resources (MEMR) of the Republic of Indonesia, in collaboration with the United Nations Development Program (UNDP), has achieved an important milestone in its mission to expand clean energy and sustainable economic growth to 22 remote villages in four provinces in Indonesia, namely East Nusa Tenggara, West Sulawesi, Southeast Sulawesi, and Central Kalimantan, through the “Accelerating Clean Energy Access to Reduce Inequality (ACCESS) project, according to a press release received by Tempo on Monday, September 2, 2024.

With the support from the Korea International Cooperation Agency (KOICA), the ACCESS project has successfully built off-grid solar power plants (PLTS), empowered local operators through training and capacity building, and strengthened local institutions, particularly village-owned enterprises (BUMDesa), to ensure the continued operation of the solar power plants while opening up opportunities for local economic growth.

Sahid Junaidi, the Secretary of the Director General of New Renewable Energy and Energy Conservation of the Ministry of Energy and Mineral Resources, in the inauguration ceremony of the solar power plant held in Mata Wee Lima village, Southwest Sumba, said that the results of the construction of the PLTS that the government inaugurated reflect the commitment in finding solutions to achieve the national electrification target.

"By 2023, PLN's electricity service ratio has reached 98.3% of Indonesia's population, but there is still 1.7% left who have not received access,” he said.

Sahid continued that in some areas with difficult geographical conditions, PLN faces challenges in building electricity networks, so renewable energy is a very important alternative.

"The ACCESS program is an example of strategic collaboration between the Government, KOICA, and UNDP Indonesia in overcoming these challenges. We hope that similar programs can be replicated in other areas,” said Sahid.

Positive Impact: Community Empowerment Through Clean Energy

To date, this ACCESS project has successfully installed solar farms and associated grid infrastructure in all target provinces, providing a total electricity capacity of 1.1 Megawatts to more than 3,000 households, benefiting more than 20,000 individuals.

In addition to providing light to the villages, these solar installations have contributed to improved quality of life in the surrounding communities, creating new opportunities for local development. A total of 20 BUMDesa have been established or revitalized, ensuring sustainable management and maintenance of the solar farms going forward.

The Ministry of Energy and Mineral Resources (MEMR) of the Republic of Indonesia, in collaboration with the United Nations Development Program (UNDP) through the “Accelerating Clean Energy Access to Reduce Inequality (ACCESS) project, has achieved an important milestone in its mission to expand clean energy and sustainable economic growth to 22 remote villages in four provinces in Indonesia, namely East Nusa Tenggara, West Sulawesi, Southeast Sulawesi, and Central Kalimantan. (UNDP Indonesia)

In addition, the BUMDesa have also successfully launched various businesses, including trading, animal husbandry and tilapia farming with biofloc systems, as well as services such as photocopying, cargo transportation, and excavator services. Most of these business initiatives use clean energy from solar power plants in their daily operations. These BUMDesa generate monthly revenues ranging from Rp1.5 million to Rp11.6 million.

One example of a success story is BUMDesa Eka Pata in Southwest Sumba, which managed to sell 130 chickens to generate more than Rp8 million in revenue with a profit of almost Rp2 million. 

“Congratulations to all those involved in completing the construction of 22 off-grid solar power plants under the ACCESS Project. Achieving the common goal of 100% electrification is no easy task, especially considering the challenges of the Covid-19 pandemic during the implementation time and the difficulty of access to reach remote locations. Dedication and multi-stakeholder collaboration are essential in achieving this important milestone,” said *Dr. Sooyoung Park, Deputy Director of KOICA Indonesia.*

“We extend our deepest gratitude for your hard work. As we celebrate this success, we must also focus on the sustainability of this infrastructure. Strong ownership from ministries at the national level to provincial and district levels is critical to ensure long-term impact and sustainable benefits. Your continued commitment is key to the future success of this project,” added Dr. Park.

Building an Inclusive Legacy: leaving no one behind

To achieve sustainable development, it is critical to engage diverse groups, including women in the energy sector.

Sujala Pant, UNDP Indonesia Deputy Resident, highlighted the strong emphasis on gender equality and social inclusion, “We are committed to ensuring gender equality and social inclusion by embedding these principles into every aspect of the project. For example, 46% of the total local technical operators trained and certified are women. This is an important outcome that will lead to a change in the systemic representation of women in the sector so that women can become active agents in the sector.”

ACCESS project results go beyond energy solutions; rather, they also lay the foundation for community-led sustainable development. By establishing and strengthening local institutions such as BUMDesa and local MSMEs, as well as ensuring women's active participation in the processes, the project has fostered resilient communities that can continue to thrive after project completion.

As Indonesia continues its journey towards a more equitable and sustainable energy future, the success of the ACCESS project can serve as an example of what can be achieved through collaboration, innovation, and solid commitment.

TEMPO.CO

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