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Energy is one of the basic human needs which also allow the people to have a better life and improved standard of living. A better life means satisfying the basic human needs, including access to jobs, food, health services, education, running water, etc. Electricity as to be energy carrier also takes an important part in daily activities. In line with socio-economic development and population growth, electricity demand is also increasing. This is also being experienced by Indonesia, with an average growth rate of around 10 % per year.
Unfortunately, electricity supply from PLN as state-owned company which provides electricity service for Indonesian people can’t meet the increasing demand, resulting in blackouts at some areas and low electrification ratio.
Reviewing PLN’s performance which encompasses generating, transmission and distribution developed that there are several problems inside PLN that hinders expanding electricity service across Indonesia, beside PLN centralized distribution system. The problems are lack of investment, lack of proper policy which support the availability of primary energy to generate electricity and electricity tariffs which not reflect generation cost. These problems result in low electrification ratio.
To address above problems, I focused on overcoming low electrification ratio problem not on problems inside PLN’s management as was done in previous study. I proposed Decentralized Electrification System using micro-hydro, which can be applicable in rural and remote areas. I proposed decentralized electrification because it is considered necessary to achieve energy independence of local area. The provision of electricity through the priority use of local energy sources will be more economical because it does not require transportation and / or distribution, and at the same time will maintain energy security areas because it will ensure the sustainability of economic development in the area. I put micro-hydro power plant as one of methods to implement decentralized electrification system, because: 1) Indonesia’s topography is evident of small and large hydro resources, where mostly located at rural areas, home for 60 % of Indonesian people; 2) Indonesia has so much potential for hydro that has not been used effectively, which is about 75 GW, but only about 4.2 GW of which are utilized and for micro-hydro potential of about 450 MW, which utilized only about 230
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MW installed by 2008; 3) the process is done easily and affordable, the price of turbines, generators, control panels, up to civil construction approximately Rp. 5 million/ kW; 4) the availability of water as primary energy will not run out as long as we can keep the cycle well; 5) and of course environmental friendly.
To implement decentralized electrification using micro hydro power plant, three instruments are needed, namely financing, subsidies and technical assistance.
Engagement from regional governments, private sector, non-governmental organization and village community are required to construct micro-hydro power plant as well as maintenance.
Leading experiments of micro-hydro power plant construction indicate that the improvement of quality of life is materialized after village community can access to electricity. Cinta Mekar, Garung and Tulak Tallu micro-hydro power plants are three successful cases in this field, while Mekarjaya got failure, because there was no cooperation between service provider and village community. Cinta Mekar micro-hydro has capacity of 120 kW that illuminates 122 houses, while Garung micro-hydro power plant has capacity of 15 kW that can illuminate 77 houses.
From micro-hydro implementation, I argue that, if rural and remote areas where the access to electricity is limited but there are rich in hydro potential resources, people can construct and develop micro-hydro power plant with the help of regional government, private investor and service provider. In this way, more people can access to electricity, and consequently electrification ratio could improve throughout Indonesia.
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ACKNOWLEDGEMENT