Managing Transition to Renewable Energy: Finding Way Out from Prolonged Disparity in Electrical Access

Abstraksi

Indonesia is planning to achieve the 100% electrification rate through the megaproject of 35,000 MW (PLN, 2017). The project needs recalculation because of the deployments are not progressing as scheduled. Only 19,700 MW will begin operating in 2019, from the target of 26,000 MW (RUPTL, 2017). It is worsened by the lower country’s economic growth than the expected plan (Mietzner, 2017), therefore, affecting electricity affordability in the targeted areas. As an archipelagic country, conveying electricity access to all areas remain a challenge. Recent data show that 10.4 millions households still live without power (ADB, 2016). However, small-scale, dispersed, and locally dependent energy system will potentially address such challenge. We highlight three main errors. First, although Indonesia has abundant renewable energy resources which remain untapped, most of the megaproject tends to use coal and fossil fuel sources. The second, enforcement of regulations to on-grid systems and large-scale investment approaches have created bias in renewable energy development. Third, the centralized system and state-owned electricity company (PLN) monopoly will continue to perpetuate regional imbalances in the context of the availability of electricity access. At the end, this pattern potentially triggered the rejection and conflict between the company and the community. We argue that decentralizing the management of energy systems can help region to adapt its generation and conversion technologies according to the potential, demand and capability of the local condition. To do so, this study draws lessons on appropriate institutional arrangements and transition management from the case of Kasepuhan Ciptagelar, Banten Kidul.