Abstract
Indonesia still faces challenges in providing energy access to remote areas, reducing reliance on fossil fuels, and reducing greenhouse gas emissions. In terms of providing energy access, in recent years, the Government of Indonesia (GOI) has been actively increasing its national electrification ratio and has reached 98.05% by 2018. However, national electrification is still mostly focused only on several areas in Indonesia, with East Nusa Tenggara as one of the regions that still have a low number of electrifications based on the Ministry of Energy and Mineral (2018) with a 61.06% electrification ratio. Moreover, it was a completely different effort to increase the renewable energy system within East Nusa Tenggara, a remote region with great potential for renewable energy sources. Because of the apparent disparity between electrification of urban and rural areas then. Renewable energy decentralized networks are usually more effective in remote areas (Edenhofer et al., 2012). Hence, Sumba Island, one of remote islands in East Nusa Tenggara designated through the Minister of Energy and Mineral Resources Decree in 2015 as the Iconic Island of Renewable Energy which is targeted to reach 100% of renewable energy usage with 95% of electrification by 2025. In order to achieve this target, community participation is an important element in optimizing the development of renewable energy and the renewable energy business, especially in East Sumba. This research aims to identify the lessons learned from renewable energy projects in order to enhance the community’s capacity in implementing the rural community-based renewable energy business model in Indonesia. Three cases are investigated, namely the Micro Hydro Power Plant (MHPP), the small-scale biogas and the solar water pump business in Luku Wingir and Waimbidi Village - East Sumba, which are the main sources of electricity in both villages. The identification of the lessons learned is carried out through identifying the characteristics of the community-based renewable energy business in East Sumba based on the business model canvas characteristic by Bocken et al. (2014). Then, the recommendation to enhance the community’s capacity in developing its business model is established based on Chaskin, (2001) building community capacity framework by identifying characteristics of community capacity in supporting community-based Renewable Energy business development in East Sumba. To complement the framework, This research uses a qualitative approach, and the data obtained through primary surveys and secondary data surveys, including questionnaires and in-depth interviews with relevant stakeholders such as the representative of the community and local government . In the identified business models, there are various findings that explain community-based business activities, such as the existence of a village development forum and a weekly association to discuss builders, including business models in both villages. This renewable energy also has a good impact on the economic and social conditions of the local community. The result also indicates that the Rural Community-based Renewable Energy Business Model in Luku Wingir and Waimbidi Village - East Sumba need to be developed based on the fundamental strategies of building community capacity: (1) leadership development of the village community in East Sumba, (2) business organizational development in managing the renewable energy, (3) developing a major role for the community in organizing renewable energy, and (4) adapting collaborative relations among multiple stakeholders in East Sumba. This research would provide an overview as well as recommendations for relevant stakeholders to implement and also improve the community-based renewable energy business model in rural and remote areas through increasing the capacity of the community.
