Local Energy Generation as the Solution of Energy Access in Remote Areas
Energy is the building block of all human economic activities. Every region of the Indonesia archipelago must have affordable and reliable energy access in order to develop and to strive. However, current energy infrastructure does not reach all areas equally. Remote areas, specifically Eastern Indonesia, have a very minimum access to modern energy supply. Therefore, local energy generation is a more effective approach rather than centralized energy distribution in providing energy access for Indonesian’s remote areas.
Providing centralized energy infrastructure down to every island and villages in Indonesia is challenging. In 2019, Indonesia electrification ratio is 98,8% which seems very close to electrifying all regions¹. However, providing electricity for outermost, remote, and underdeveloped (3T) regions is unreachable due to geographic condition. Moreover, developing oil and gas distribution for all islands is not feasible and not reliable due to weather and sea condition. Thus, centralized infrastructure is not favorable.
Local energy sources are available in most regions and waiting to be exploited. Solar energy is available across Indonesia, especially in Nusa Tenggara. For areas where the soil is fertile, energy crops can be planted as a source of biomass which then gasified to provide heat and electricity. Moreover, livestock manure is able to convert to biogas for cooking. Finally some district with continuous river can be utilized for electricity generation. It is clear that Indonesian regions is rich with natural energy sources to be developed.
Besides being energy self-sufficient, local energy generation generates jobs and promotes economic activity to the local people. Centralized energy distribution, i.e. LPG and gas stations tend to benefit the central government. Since the profit flows to the BUMN, it does not guarantee that it will be enjoyed by the local people as subsidy or infrastructure development. In contrast, local energy generation, such as biomass gasification requires local people and local businesses to operate the plant, cultivate the crops, transport and process the biomass. In the end, a new economy emerged and benefited the local region.
To summarize, local energy generation would make energy access to remote areas possible. Developing centralized energy distribution infrastructure is proven challenging. On the other hand, energy source is available locally and its development will be beneficial for the local society. Therefore, it is recommended for the government to implement this approach accordingly.
REFERENCE
[1] https://www.statista.com/statistics/865133/indonesia-electrification-rate/
[2] https://www.pwc.com/id/en/energy-utilities-mining/assets/oil-and-gas/oil-gas-map-2019.jpg
