LocationsBeyond lighting: Solar Power Plants improve clean energy access and power economic growth
September 1, 2024
Sumba, NTT, 2 September 2024 – The Indonesian Ministry of Energy and Mineral Resources (MEMR), in partnership with the United Nations Development Programme (UNDP) through its “Accelerating Clean Energy Access to Reduce Inequality (ACCESS)” project has achieved a pivotal milestone in its mission to bring clean energy and sustainable economic growth to 22 remote villages across four provinces in Indonesia: East Nusa Tenggara, West Sulawesi, South-East Sulawesi and Central Kalimantan provinces.
With the generous support from the Korea International Cooperation Agency (KOICA), the ACCESS project has successfully established off-grid solar power plants, empowered local operators through capacity building, and strengthened local institutions, particularly village-owned enterprises (BUMDesa), to ensure the effective operation, and sustainability of the solar power plants, therefore opening wide economic growth.
At the inauguration ceremony of the Solar Power Plant (PLTS) held in Mata Wee Lima village, Southwest Sumba, the Secretary of the Directorate General of New and Renewable Energy and Energy Conservation at the Ministry of Energy and Mineral Resources, Sahid Junaidi, was in attendance. In his speech, he stated, "The completion of this PLTS project, which we are inaugurating today, reflects the Government's commitment to finding solutions to meet national electrification targets. As of 2023, PLN's electricity services have reached 98.3% of Indonesia's population, but there remains 1.7% without access."
Sahid continued, "In certain areas with challenging geographical conditions, PLN faces difficulties in extending the electricity grid, making renewable energy a crucial alternative. The ACCESS program is an example of a strategic collaboration between the Government, KOICA, and UNDP Indonesia in addressing these challenges. We hope that similar programs can be replicated in other regions."
Impact at scale: Empowering communities through clean energy
To date, the project has successfully installed solar power plants and related network infrastructure across all targeted provinces, providing a total electricity capacity of 1.1 Megawatts to more than 3,000 households, benefitting more than 20,000 individuals.
Beyond providing light to the villages, these solar-powered installations have contributed to improving the quality of life in surrounding communities, creating new opportunities for local development. A total of 20 BUMDesa have been established or revitalized, ensuring the ongoing management and maintenance of solar power plants moving forward.
Additionally, the BUMDesa have launched various business ventures, including trading, livestock and tilapia farming with biofloc system – new style of sustainable fish production – and services such as photocopy service providers, cargo transportation, and excavator services. Most of these business initiatives utilise clean energy from the solar power plants in their daily operations. These BUMDesa generate monthly incomes ranging from IDR 1.5 million to IDR 11.6 million.
An example of this success can be seen in BUMDesa Eka Pata in Southwest Sumba, which sold 130 chickens generating IDR 8,450,000 in revenue with a profit of IDR 1,950,000.
"Congratulations to everyone involved in the successful completion of the 22 off-grid solar power plants under the ACCESS Project. Advancing our shared goal of 100% electrification was no easy feat, especially given the challenges of starting during the pandemic and reaching remote locations. Your dedication and collaboration have been instrumental in achieving this milestone,” said Dr. Sooyoung Park, Deputy Country Director KOICA Indonesia.
“We extend our heartfelt thanks for your hard work. As we celebrate this success, we must also focus on the sustainability of this infrastructure. Strong ownership from national ministries to provincial and district levels is crucial for ensuring lasting impact and continued benefits. Your ongoing commitment is key to this project’s future success," Dr. Park added.
Building an Inclusive Legacy: Leaving No One Behind
To attain sustainable development, it is crucial to involve various group, including women in the energy sector. Ms. Sujala Pant, Deputy Resident Representative of UNDP Indonesia highlighted the strong emphasis on gender equality and social inclusion, "We are committed ensuring gender equality and social inclusion by embedding those principles into every aspect of the project. For instance, 46% of the total local technical operators who were trained and certified are women. This is an important result that will lead to change the systemic representation of women in this sector so that women can be active agents in the sector.
The ACCESS project’s achievements extend beyond immediate energy solutions; they lay the groundwork for sustainable, community-led development. By establishing and strengthening local institutions like BUMDesa and local MSMEs, and by ensuring the active participation of women in these processes, the project is fostering resilient communities that can continue to thrive long after the project’s completion.
As Indonesia continues its journey towards a more equitable and sustainable energy future, the success of the ACCESS project serves as a powerful example of what can be achieved through collaboration, innovation, and solid commitment.
Media contact
Devi Nugraha, Communications Analyst UNDP Indonesia | devi.nugraha@undp.org
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