ACCESS PROJECT INAUGURATION; Beyond light: Solar Power Plant improves clean energy access and powering economic growth

Sumba, NTT, 31 August 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 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 open wide economic growth.

During the inauguration ceremony held in Mata Wee Lima village, Sumba Barat Daya, Secretary of the Director General of New, Renewable Energy and Energy Conservation, Ministry of Energy and Mineral Resources Indonesia, Sahid Junaidi stated “The results of the PLTS development that we inaugurated reflect the Government's commitment to finding solutions to achieve the national electrification target. In terms of the ratio of 2023, PLN's electricity service has reached 98.3% of Indonesia's population, but there are still 1.7% who have not yet gained access."

Sahid continued, "In several 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 greatly hope that similar programs can be replicated in other areas."

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.

Beyond providing light to every corner of 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 village-owned enterprises (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 photocopying, 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 1,500,000 to IDR 11,600,000. 

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

The availability of reliable electricity has catalyzed economic activities and brought hope to more than 22,000 individuals, nearly half of whom are women. Of the 32 micro and small enterprises (MSMEs) that receive financial support from the project, 30 are women-led. These enterprises have reported increased profits, demonstrating a positive impact on local livelihoods.

Ms. Sujala Pant, Deputy Resident Representative of UNDP Indonesia highlighted the strong emphasis on gender equality and social inclusion, "We committed to making gender equality and social inclusion not just guiding principles but embedded into every aspect of the project. For instance, 46% of the total local technical operators were trained and certified are women. This effort laid a foundation in the project’s target, and it is essential that this foundation continues to be built upon in the future to ensure that women remain actively involved in the energy sector.”

Besides that, In the initial project consultation, which involved 275 individuals, 32% were women from the villages. This pattern persisted in both the consultation on electricity tariffs and the subsequent dissemination of the agreed-upon tariffs. During the tariff agreement discussions, 150 women participated out of 500 individuals (30%), and in the dissemination process, 277 women were involved out of 814 people (34%).

Ms. Pant continue said, “Women’s involvement transcends mere statistics; it stands as a powerful testament to the impact of inclusive development and the critical role of a just energy transition.”

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.