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Electrifying Karampuang: Partnership Model to Manage Solar Power Plant Involves Community and Private Stakeholders

ELECTRIFYING KARAMPUANG: PARTNERSHIP MODEL TO MANAGE SOLAR POWER PLANT INVOLVES COMMUNITY AND PRIVATE STAKEHOLDERS

Posted : December 8, 2017

8 December 2017 - Today, the Governor of West Sulawesi Province has officially inaugurated two out of four solar power plants in Karampuang Island, Mamuju District. These solar power plants and electricity installment in all houses and public facilities on the island were funded by the Compact Grant from Millennium Challenge Corporation (MCC), US. In the long run, the solar power plant will be managed by the people of Karampuang in partnership with a private entity under a village-level Special Purposes Vehicle (SPV).

The solar power project in Karampuang island is one of the results of Renewable Energy for Community Grant, under the Green Prosperity Project of Millennium Challenge Account – Indonesia (MCA-Indonesia), a trustee institution established by the National Development Planning Agency (Bappenas) to manage the Compact Grant. The inauguration event, held on 8th December 2017, was attended by the Deputy Ministers of Bappenas, and representatives from the US Embassy, the Ministry of Foreign Affairs, and the Ministry of Energy and Mineral Resources.

More than 3,000 people or 780 households will benefit from the four solar power plants that will generate a total of 600 kWp electricity. PT. Sky Energy and IKPT were awarded the Renewable Energy for Community Grant after a strict and thorough selection process. The grant aims to accelerate access to electricity in rural communities and remote areas through the construction of renewable energy power plants and electric power grid.

Two power plants that are officiated today are located in Karampuang Sub-Village 1 (200Kw) and Karaeang Sub-Village (115 kW) whereas power plant 3 and 4 will be inaugurated in January 2018. In terms of management, PT. Karampuang Multi Daya has been established whereby the people of Karampuang are represented under the Cahaya Karampuang Cooperative with 51% share ownership and 49% will be owned by PT. Trinitan Global, a subsidiary of PT. Sky Energy.

In his opening speech, West Sulawesi Governor Ali Baal Masdar said, “The solar power plants are crucial assets for this region that are expected to spur economic growth in Karampuang Island. Its management and operation should be a collective responsibility shared by the local government, private company, the local community, with support from the central government.”

The Compact Grant is distributed to fund innovative approaches to manage renewable energy with the objective to increase economic growth. In Karampuang, the partnership model that involves private company and the local community is quite a breakthrough that should be studied further to ensure the sustainability of renewable energy infrastructures in Indonesia. Considering the vast area in Indonesia that are without access to electricity from the state-owned electricity company (PLN), this kind of off-grid renewable energy management serves as a crucial alternative.

MCA-Indonesia Deputy Executive Director, Lukas Adhyakso said that electricity in Karampuang Island is expected to boost economy and improve the people’s quality of life.

“We hope electricity will immediately brighten up Karampuang Island. In the long run, we hope electricity will trigger productive activities that will increase people’s household income. Since the village has been electrified, some families have started poultry farming, food processing and other home-based business," said Lukas.

Cooperation between the local community and the local government is key to ensuring the power plant sustainability. Up to now, PT. Sky Energy has trained local community as the technical operator while improving the management competence of Karampuang Multi Daya Cooperative members. “We are committed to maintain the power plant and assist the people in the next 20 years until they are independent and able to stand on their own,” said Director of PT. Sky Energy, Hengky Loa.

For more information, please contact the Public Relations of West Sulawesi Provincial Government.