SUCCESS STORIES FROM

ENERGY INDONESIA’S OFF-GRID

ACCESS INSTALLATIONS

1
 OUR MISSION
EMPOWERING rural communities through INNOVATION

2
 ENGAGE DESIGN

MANAGE MONITOR

We ENGAGE with the communities, in the first half of 2018 we have visited 60 remote
communities in Indonesia
We DESIGN a roadmap focused on sustainable economic growth based on their needs,
available resources, culture and behavior, and most of all, around the people
We MANAGE the projects from writing the funding proposals, implementation,

3
operation and until the community can be independent
We MONITOR the performance of the projects and evaluate how to continuously improve
the community’s livelihood

3
 INNOVATE

What our company, PT Inovasi does is to empower rural communities through

innovation. We do this through four activities: Engage community members, design a
plan for growth, manage the implementation, and monitor progress. We make sure
that the rural communities have ACCESS TO INNOVATIONS that are fit for purpose.

4
Our goal is to reverse the common practice of forcing certain technologies and business
model upon the community. We don’t write feasibility studies based on how a technology
and business model might work in a community. What we do is act on behalf of
communities, evaluate their needs and resources, and then provide a way for the right
INNOVATIONS to be implemented in the right communities.

4
 LET’S TALK
MINIGRIDS

Enough about us, let’s talk mini grids

5
CLOSE YOUR EYES

6
NO PEEKING!!

7
 THE YEAR 1827

A village was born

8
No modern access to electricity

9
Next came this for $1 per night, 4 hours (18:00 to 22:00)

10
The year 2015, the community came together to help the contractor install a solar PV
system.

11
190 years after the village was incorporated, they finally have modern access to
electricity. 155kWp of solar PV system for 3 communities, 500 households in total
finally have 24 hours access of electricity. Thanks to the Ministry of Energy and
Mineral Resources, Directorate General of New and Renewable Energy and Energy
Conservation (MEMR-DGNREEC).

12
Good equipment and more than adequate workmanship.

13
PT Inovasi team members properly trained the local field operators for basic
maintenance and operations. We also involve and encourage women interested to be
trained and be operators.

14
There is a big difference between equality and equity. Equality is giving everyone the
same tool to achieve the same goal. In this example, everyone is given the same type
and size of bicycle even when the conditions for each person is different. This is the
same as planning for equal tariffs of electricity to be available to everyone. The fact is
everyone’s needs are different, and the conditions for which electricity can be

15
provided is different (such as terrain and accessibility).

Instead we should aim for equity of opportunity. Everyone should be given the same
opportunity to enjoy electricity.

In the case of the above village, finally they received an equitable opportunity for growth
through a grant from MEMR. Instead of waiting for the utility company to come and
provide them with electricity at the same, equal rate as everyone else, they are given the
electricity they need at a higher cost per kWh. Monthly fees of Rp 40,000 to Rp 150,000 are
charged to the households for 9kWh of electricity usage per month (system built prior to
2015) and for 18kWh of electricity usage per month (systems built beyond 2016). This is 2x
to 4x more expensive (at Rp 50,000 monthly charge) than the utility rate in the cities.

So now they are in a more equitable position as many of us in the cities as far as energy
access is concerned. Instead of 11 cents/kWh that people in the Indonesian cities are
paying, the community is paying 34 cents/kWh. But at least they have modern access to
energy and they have the opportunity to grow using electricity as one of the tools.

15
 MICROGRIDS IN INDONESIA

So let’s talk about microgrids in Indonesia.

PLN, the national utility company has hundreds (maybe more) installed across
Indonesia running on diesel generators with a handful running on renewable energy
Private home owners in villages or remote villas have their own. Most are diesel but a
few are solar PV based

16
Provincial government also has them, and some of them are renewable energy based (solar
PV and microhydro mainly)
Are there anymore? How many 100% renewable energy microgrids are there in Indonesia?

16
 HOW MANY?

Now help me think about this for a minute. How many minigrids have been installed
in India? In Africa? How many institutions installed them? How many minigrids have
been installed by a single entity?
TANESCO – over 100 minigrids http://www.wri.org/blog/2017/10/electrifying-africa-
mini-grids-five-lessons-Tanzania

17
Smart Power India – 106 minigrids http://www.powerforall.org/blog/2017/9/28/policy-
spotlight-nigeria-india-lead-on-mini-grids

17
 INDONESIA:
9 MINIGRIDS ?
97 MINIGRIDS ?

How many are in Indonesia? 100% renewable energy based.

18
 ANSWER: 973

Nine hundred and seventy three

19
Total solar PV minigrids: 28MWp installed between 2012 and 2017. 616 microgrids
that are solar PV based and 357 micro hydro power systems.

20
 WHO IS THE
INVESTOR?

Who’s been investing in these systems?

21
 The
Indonesian
people

The Indonesian people have. Through their taxes.

22
 MINISTRY OF
ENERGY AND
MINERAL
RESOURCES

Implemented by the Ministry of Energy and Mineral Resources (MEMR) through its
Directorate General of New and Renewable Energy and Energy Conservation
(DGNREEC). They have installed almost 1,000 renewable energy based microgrids
across Indonesia utilizing the state budget.

23
Besides being a single entity that has implemented the most number of mini grids in
the world, the directorate general of new and renewable energy and energy
conservation have also challenged 4 myths about government funded minigrids:
1. They don’t provide enough power/energy
2. they’re not reliable

24
3. They’re low quality
4. They’re expensive

24
Don’t get me wrong, it’s not that how the Indonesian Ministry of Energy and Mineral
Resources got it perfect. I’ve bee involved in surveying and inspecting their microgrids
and how they procure the systems since 2012 (for the build year 2011). There is
always improvement every year. They take in lessons learned from the previous year
and implement them for the next year. Despite the negative press about a solar PV

25
site that doesn’t work, whether they’re funded by MEMR or not, the Directorate General of
New and Renewable Energy and Energy Conservation (DGNREEC) under MEMR press
forward. They continuously improve their processes as we’ll see later on in this
presentation.

Because of this perseverance and continuous improvement, DGNREEC is now the one entity
who have funded and procured the largest number of rural microgrids in the world.
16MWp and 561 solar PV sites between 2012 and 2016 alone. Not including the
microhydro sites. Not including the provincial sites that were not procured by DGNREEC but
utilizes the same procurement method and specifications. Their contribution to rural
electrification is real, measurable, and relevant.

Let’s figure out what went well, what their success are, and then dissect a little bit their
process that makes all this work.

25
 SUFFICIENT POWER AND ENERGY

4 successes of EBTKE projects:

1. There is enough power and energy given to the community
2. They are reliable
3. They use high quality equipment
4. They are cost effective

26
Is this true? Government funded minigrids don’t provide enough power/energy to the
community? Let’s see….

27
Source: GIZ Indonesia

28
Source: GIZ Indonesia

29
RELIABLE
OPERATIONAL
STATUS

30
82% of the contacted sites are still operational. Some of the systems contacted are 3-
4 years old. Compared to previous survey periods, most experienced no change in
status, some have even recovered, and only 3% worsened

According to a GIZ study and presentation

31
https://energypedia.info/images/e/e5/Report_Operational_Status_Survey_-
_EnDev_Indonesia_ed.Dec_2016.pdf

31
32
33
They’re not low quality, using SMA inverters in many of their recent sites

34
Or Schneider Electric

35
36
 GRANT BUILT MINIGRIDS
Location Size Technology Project Cost / W House Cost/HH
Value holds

Wakatobi, South Sulawesi 800 kWp Solar PV $8,833,169 $11.04 1,038 $8,509
Mamuju, West Sulawesi 598 kWp Solar PV $6,588,883 $11.02 784 $8,404
Mentawai, West Sumatra 700 kW Biomass $13,417,229 $19.17 1,204 $11,144
Sumba, East Nusa 492 kWp Solar PV $10,091,279 $20.51 909 $11,102
Tenggara
Berau, East Kalimantan 1,243 kWp Solar PV $10,705,875 $8.61 463 $23,123
Lombok, West Nusa 1,320 kW Hydro $10,845,788 $8.22/W 1,650 $6,573
Tenggara (*)

(*) – Cancelled due to grant co-financer failed to provide a bank guarantee for the remaining project construction phase
beyond the grant timeline

Sources : Millennium Challenge Corporation, Akuo Energy, Sky Energy, Clean Power
Indonesia

How much do you think the government built systems cost?

37
 MEMR BUILT PV MINIGRIDS
US$8/Wp

Utility grade poles and cables, energy limiters at each house, street lighting, mostly at
VERY remote areas, and in the last couple of years, long life batteries have been
specified (requiring de facto use of lithium ion batteries or zinc-air batteries). Despite
this high requirements, the cost remain competitive. Now who was here for the deep
dive for my talk about the Indonesian policy? Now, guess how many of these

38
minigrids have a business area license? Why don’t anyone go to jail? Because they’re not
selling electricity. It is a service charge for maintaining the system.

38
 PLN GRID EXTENSION
IN REMOTE PAPUA
VILLAGES
US$10,400/HH

PLN built gas power plants (one of them in Nabire is 20MW), substations, medium
voltage distribution lines and low voltage lines to electrify 1,040 households. 150
million IDR for each household

“"Banyak tantangan yang kami hadapi dalam pemasangan listrik di desa-desa

39
terutama pedalaman Papua dan Papua Barat, diantaranya mobilisasi alat karena medan
yang sangat berat, ada juga beberapa masalah sosial yang harus kami hadapi, namun
senyum puas warga yang akhirnya bisa menerima listrik menjadi kebahagiaan kami dan
memacu kami untuk terus melistriki desa-desa lainnya," ungkap Direktur Bisnis Regional
Maluku dan Papua PLN Ahmad Rofik, di Nabire (19/12/2017).
Rofik melanjutkan untuk 74 desa total investasi yang dilakukan PLN sebanyak Rp 150 Milyar
dengan jumlah kepala keluarga yang rumahnya sudah tersambung di 74 desa tersebut
sebanyak 1.040 kepala keluarga. Sedangkan, potensi pelanggan yang belum tersambung
2.700 kepala keluarga. Untuk melistriki satu kepala keluarga membutuhkan biaya Rp 150
juta karena hal ini disebabkan beratnya geografis desa yang akan dilistriki.”

Source: https://petrominer.com/jokowi-resmikan-program-lisdes-di-74-desa-papua-papua-
barat/
http://www.tribunnews.com/nasional/2017/12/20/pln-kebut-listriki-desa-desa-di-papua-
papua-barat
https://kumparan.com/@kumparanbisnis/cerita-pln-tembus-pegunungan-papua-demi-
melistriki-desa-terpencil

39
So what were the factors of success?

40
 ADVANCED
TECHNOLOGY?

Technology? Nope, many of them still use lead acid batteries, good old AC coupled or
DC coupled inverters (SMA, Schneider, Leonics). Technology is no longer an enabler,
it’s just a tool. A particular technology may work really well in one situation. But if we
replace it with another that may not work as well in certain aspects, it doesn’t mean
that no other technology will work. There are others that will work okay but meets

41
the needs just fine.

41
 PROFESSIONAL
O&M?

Nope, they’re mostly operated by the community

42
 ADVANCED ROBOTICS?

Nope, not that either

43
 PRODUCTIVE USE
OF ENERGY?

Sometimes, yes, productive use of energy creates sustainability. But not always.

44
 PRODUCTIVE
USE OF
ENERGY?

Most importantly, productive use of energy is not a concept that is part of a daily
routine of most villagers. It is not part of the ecosystem they’re used to for survival.
So clearly, productive use of energy isn’t a big contributor to MEMR’s success stories.

45
If it’s none of those things, then what’s the answer? What are the success factors of
these rural microgrids?

I’ll tell you 3 things:

1. People

46
2. People
3. People

Without the right people along the process chain, from start to end, none of it matters. The
perfect technical solution will still fail if there are vandals who aren’t invested in the system.
Or if there are nobody to take care of it. A good plan for productive use of energy will fail if
the people don’t want to do the work because it’s not part of their culture and norms. A
mediocre system, even a minimally designed system will still make an impact to the people
if everyone works together to make it work and to make it impactful and to make it
sustainable.

46
 PEOPLE

It’s the people. Finding the right stories, and how to work with them.

47
 PEOPLE

It’s the people. Ensuring that the communities are involved and engaged through the
selection process.

48
 PEOPLE

It’s the people. Making sure that everyone throughout the process is engaged, and
have a stake in the process. The communities need to prepare the land and need to
make it accessible. The provincial government need to ensure they’re budgeting for
and have the manpower to provide sustainable operation and maintenance. Lastly,
the ministry level teams are empowered to be capable in procuring good quality

49
systems.

49
 MINISTRY OF
ENERGY AND
MINERAL
RESOURCES

Throughout the years, not that many actually, since 2012, MEMR have learned how to
engage the right people and put the risks and responsibilities to those who are best to
bear them. And to give the benefits to the right people. The latest regulation puts
everything together into an easy to understand, easy to follow process.

50
 MEMR
REGULATION
39/2017

Updated in 2018 through MEMR Regulation 12/2018

51
 PROCESS

This regulation defines the process under which the province can request for the
villages to be electrified with the national budget. They have to agree to certain
conditions

52
 STEP 1 : PROPOSAL

The requirements really are just like a wedding vow

At this stage, the province (or other ministries) must declare that:
1. Ready and willing to accept ownership and operate the assets
2. Ready to support and assist the operators and end users of the assets through the
local government budget

53
3. Appoint the operating institution and the end users
4. Provide the land as required
5. Request permission from PLN
6. Technical documents such as feasibility study

53
 STEP 2 : EVALUATION

Administrative and technical. Sometimes it includes site visits

54
 STEP 3 : APPOINTMENT

The sites are determined and budgeted for the next year’s cycle

55
STEP 4 : PROCUREMENT

56
 STEP 5 : ASSET HANDOVER

Handover of the asset ownership to the institution who requested the minigrid to
begin with. This is typically the province. In this case both the MEMR and the
province will have to agree to the handover based on prevailing regulations and given
that the assets are in good working order

57
 STEP 6 : MANAGEMENT

Operation and management of the assets :

1. An entity must be appointed as the operator or end user of the asset. They can be
cooperatives, local government owned company, or a community group
2. The appointed operator MUST ensure fund allocation for operation and
maintenance

58
59
Andre Susanto
[email protected]
+62 811 911 0427
https://id.linkedin.com/in/andresusanto

ACEF 2018, Manila, Phillippines

EMPOWERING rural communities through INNOVATION

60