Energising Development (EnDev)

Project description

Title: Energising Development Indonesia (EnDev Indonesia)
Commissioned by: German Federal Ministry for Economic Corporation and Development (BMZ)
Country: Indonesia
Lead executing agency: Ministry of Energy and Mineral Resources (EBTKE)
Overall term: 2009 to 2018

Thanks to EnDev, more than 100 micro-hydropower stations have been set up. © GIZ

Context


Almost 70 million Indonesians – around a third of the population – have no access to electric power from the national grid. In rural communities, therefore, wood and kerosene are the primary sources of energy, and there are a large number of small diesel generators in use. Despite having its own oil resources, Indonesia is an oil importer and as such is strongly dependent on international price fluctuations affecting kerosene, diesel and petrol. In the past, the use of subsidies and state energy programmes discouraged the development of a strong, market-oriented renewable energies sector. Measures such as feed-in tariffs can not be expected to have a big effect on the energy shortfalls in rural areas.

Objective

Targeted measures for the application of renewable energies have ensured access to power for 172,000 people in rural areas, as well as 1,000 small businesses and 900 social institutions. The technological focus is on micro-hydropower and photovoltaic facilities.

A blacksmith’s work made easier: an electric bellows rekindles the embers. © GIZ

Approach


The project, which is cofinanced by the Netherlands Ministry for Development Cooperation (DGIS) and the Norwegian Ministry of Foreign Affairs, identifies existing or planned public and private rural electrification programmes, and suggests tailored measures for their implementation or improvement. The proposals generally relate to technical and socio-economic interventions. It is an approach that invests less of the project’s resources in infrastructure, and more in measures that promote the sustainability of facilities, for instance through training programmes for local management teams, or through the promotion of electrical equipment in micro enterprises. All the activities are underpinned by a tried and tested monitoring system using key performance indicators, as well as an SMS-based communications platform (BReIDGE). The latter is a method specially designed and launched by EnDev to deliver prompt support to rural communities in the event of problems related to the operation, maintenance or administration of their power plants.

Results achieved so far

So far, more than 121,000 people, 1,300 micro enterprises and 900 social institutions have gained a power supply. Management teams have been established and trained in 228 villages. In mid-2013, a comparative study examining the potential sustainability of different micro-hydropower programmes in Indonesia concluded that facilities supported by EnDev demonstrate much greater sustainability than comparable programmes, in terms of their technical quality and socio-economic strengths.

EnDev prioritises support for initiatives that aim to have an impact on local economies. A pilot measure to gather information on the impacts of using electrical equipment in micro enterprises revealed that 72% of these businesses had increased their incomes by up to 40%. All the power stations are now working at 90% capacity, whereas previously the figure was only 60%. In turn, the operators’ incomes have risen by as much as 88%.

The project evaluates and documents all its activities in detail. Using the performance monitoring system carried out as part of technical inspections – supported by INTEC-GOPA among others – more than 200,000 data records have been collected relating to facilities in some 313 villages. In this way, the project has produced the most up-to-date and comprehensive database on off-grid rural power stations in Indonesia. Above all, this information provides a baseline against which to measure the long-term impacts and sustainability of the stations during subsequent data surveys. With the BReIDGE system, more than 260 SMS requests have been answered since March 2013.

Indonesia © GIZ