Program TERANG Hivos – Utilization of renewable energy in Indonesia is so important so that the resources can be used wisely. Renewable energy has an important role in rural communities, especially in East Nusa Tenggara, West Nusa Tenggara, and South Sulawesi. This is expected to be an inspiration and exploration of opportunities for small-scale renewable energy investment in remote areas.

On the “Terangi Nusantara” event (1/24/2018), practitioners shared success stories and best practices regarding the use of renewable energy. Through the National Energy Policy, the Government of Indonesia has also committed to maximizing the use of Renewable Energy in order to achieve the target of 23 percent in 2025.

To support this commitment, HIVOS collaborated with various partners implementing the TERANG (Investing in Renewable Energy for Rural, Remote Communities) project to provide the procurement of renewable energy. At the end of 2017, the project has provided electricity access for 26 districts in East Nusa Tenggara, West Nusa Tenggara, and South Sulawesi.

Through the TERANG project, as many as 5,079 households already used renewable energy, 25 schools had renewable energy sources, 60.68 KW of electricity generated from solar PV, and the electrification ratio of the Sumba Iconic Island in East Nusa Tenggara increased from 24.5% (in 2010) to 42,67% (in 2017). This is in line with this country’s efforts to create a more climate-friendly economy by reducing the amount of electricity produced from fossil fuels.

Hivos Southeast Asia Regional Director, Biranchi Upadhyaya, emphasized the importance of renewable energy in development. “Collaboration projects such as TERANG project play an important role in extending the coverage of the off-grid renewable energy, reaching out to communities in remote villages, and improving their livelihoods through the use of renewable energy,” he said. That is why the access for renewable energy must be inclusive and accessible for all.

In September 2017, Indonesia reached 93.08% electrification ratio, where almost all regions from Aceh to Sulawesi had an electrification ratio above 70% on average. While in East Nusa Tenggara the electrification ratio only reached 58.99% and even Papua only had an electricity resistance ratio for 48.91%. This fact shows that energy services in Indonesia are not yet inclusive.

The lesson learned that we got is on the importance of the cooperation and partnership among various stakeholders in order to create inclusive energy. Efforts to collaborate with various national and international financial institutions and agencies must be continued so that more remote areas can be reached, ” said Eco Matser, Coordinator for Climate Change, Energy and Development of Hivos.

The seriousness and commitment of all parties to achieve high targets must be done together. Funding for the construction of on-grid and off-grid renewable energy power plant installations is expected to come from State-Owned Enterprises investments (State Electricity Company), Regional-Owned Enterprises, the private sector, NGOs, development donor agencies, and the central and provincial government budgets. “Smart-grid technology can be one of the solutions to achieve the 95% electrification ratio target and the maximum use of renewable energy to bring lights throughout the archipelago,” said Rida Mulyana, Director General EBTKE of the Ministry of Energy and Mineral Resources. Energy access can change the lives of the people who get it.