TY - JOUR
T1 - Socio-techno-economic assessment to design an appropriate renewable energy system for remote agricultural communities in developing countries
AU - Pandyaswargo, Andante Hadi
AU - Wibowo, Alan Dwi
AU - Onoda, Hiroshi
N1 - Funding Information:
This research is funded by the Japan Society for the Promotion of Science (JSPS) Kakenhi grant. The project number is 21K17930 with a research theme: Addressing the sustainability challenges of off-grid renewable energy systems: Smart community reverse innovation. The authors express tremendous gratitude to the editors and anonymous reviewers of this article for their constructive feedbacks and to the managers and residents of Karya Jadi village in South Kalimantan for their cooperation and hospitality during our field survey.
Funding Information:
An appropriate design is necessary in developing countries where financial resources are limited ( Gabriel et al., 2016 ). Access to financing the upfront cost, market development barriers, and financing replacement of technology reparation has been reported as common economic challenges of off-grid RE systems ( Come Zebra et al., 2021 ). The high upfront cost of a centralized community-scale RE system is often not compatible with the economic power of the people living in remote areas, who are often categorized as the bottom billion ( Scott, 2017 ). However, projects that are solely dependent on external funding from grants, international donors, and philanthropies are vulnerable to financial breakdowns when the project duration is completed ( Hong et al., 2015 ). Logically, the more sustainable approach would be to focus on cash flow and income generation from the RE system. However, communities living in remote areas are often very isolated, and they face poor access to the market outside of the village so that cash flow only circulates within the village community. Such situations pose a high risk of financial return, causing unattractiveness to private investment and bank loans ( Come Zebra et al., 2021 ). This situation emphasizes more on the importance of an appropriate design to build confidence among investors.
Publisher Copyright:
© 2022 The Authors
PY - 2022/5
Y1 - 2022/5
N2 - Access to clean energy for communities living in remote areas where grid extension is considered unfeasible can be provided by off-grid electrification systems using renewable energy (RE). Especially in developing countries, ensuring the appropriateness of such systems is crucial because it will determine the system's sustainability despite its limited resources. This study demonstrates the design process of an appropriate system by assessing the potential of three RE sources: solar, wind, and biomass in an oil palm and rubber-tree plantation village in South Kalimantan Province, Indonesia. A social assessment is done to avoid sustainability issues of the previously introduced technology intervention by identifying correlations between residents' attributes and satisfaction levels on a selection of social values through multiple correspondence analysis (MCA) and nonparametric methods. The techno-economic assessment and sensitivity analysis uses local data processed with the Hybrid Optimization of Multiple Energy Resources (HOMER) software. Results identified the need for a more appropriate clean energy supply for cooking, the potential role of modern technology, and access to information and communication in income generation, among other needs and opportunities that can be linked with the energy system design. The technical assessment showed that a centralized solar power plant paired with a diesel engine could provide power to the village. However, the cost of electricity (COE) is much higher than the price cap introduced by the national electricity company. This study urges a clear mechanism and a guarantee for the delivery of feed-in-tariffs (FIT) and a price cap exemption for off-grid RE systems. Furthermore, a people-centered public–private partnership business model and a remote capacity-building intervention are also needed. An appropriate energy system design must be supported by an enabling environment and supporting policies to be feasible.
AB - Access to clean energy for communities living in remote areas where grid extension is considered unfeasible can be provided by off-grid electrification systems using renewable energy (RE). Especially in developing countries, ensuring the appropriateness of such systems is crucial because it will determine the system's sustainability despite its limited resources. This study demonstrates the design process of an appropriate system by assessing the potential of three RE sources: solar, wind, and biomass in an oil palm and rubber-tree plantation village in South Kalimantan Province, Indonesia. A social assessment is done to avoid sustainability issues of the previously introduced technology intervention by identifying correlations between residents' attributes and satisfaction levels on a selection of social values through multiple correspondence analysis (MCA) and nonparametric methods. The techno-economic assessment and sensitivity analysis uses local data processed with the Hybrid Optimization of Multiple Energy Resources (HOMER) software. Results identified the need for a more appropriate clean energy supply for cooking, the potential role of modern technology, and access to information and communication in income generation, among other needs and opportunities that can be linked with the energy system design. The technical assessment showed that a centralized solar power plant paired with a diesel engine could provide power to the village. However, the cost of electricity (COE) is much higher than the price cap introduced by the national electricity company. This study urges a clear mechanism and a guarantee for the delivery of feed-in-tariffs (FIT) and a price cap exemption for off-grid RE systems. Furthermore, a people-centered public–private partnership business model and a remote capacity-building intervention are also needed. An appropriate energy system design must be supported by an enabling environment and supporting policies to be feasible.
KW - MCA
KW - Off-grid electrification
KW - Renewable energy
KW - Rural development
KW - Sustainability assessment
KW - Sustainable development
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U2 - 10.1016/j.spc.2022.03.009
DO - 10.1016/j.spc.2022.03.009
M3 - Article
AN - SCOPUS:85126950873
SN - 2352-5509
VL - 31
SP - 492
EP - 511
JO - Sustainable Production and Consumption
JF - Sustainable Production and Consumption
ER -