PRESS RELEASES

New Access to About 500 kWp of Clean Energy for Remote Villages in East Sumba

NEW ACCESS TO ABOUT 500 KWP OF CLEAN ENERGY FOR REMOTE VILLAGES IN EAST SUMBA

Posted : April 11, 2018

(Waingapu) 11 April 2018 – Communities in the five villages of East Sumba, including Tawui, Lailunggi, Praimadita, Tandula Jangga, and Praiwitu, can now enjoy access to clean energy with the completion of the community-based solar photovoltaic (PV) distributed generation system project.  Inaugurated by the Vice Bupati of East Sumba district, Umbu Lili Pekuwali, the facility will provide a total of 492 kWp installed capacity, expanding electricity access to approximately 852 households and 57 public facilities. Overall, 11 solar vine micro grids have been installed in the five villages.

The project was financed by US$ 9.2 million (equivalent to IDR 126 billion) as part of the Compact Grant from the U.S. Government’s Millennium Challenge Corporation (MCC) and by contributions from the five communities in the form of land, productive trees or agriculture, and cash contributions through village funds.

“Community management and ownership has been critical to this effort’s success in Sumba,” said Jonathan Richart, MCC’s Deputy Vice President, Infrastructure, Environment, and Private Sector.  “MCC invests to accelerate economic growth, and now with increased access to electricity, the community is well-positioned to build on progress to create new opportunities.”

Parallel to the construction of the facilities, the project also provided economic opportunities trainings to more than 250 women and men in the villages. This includes trainings in entrepreneurship, management, agriculture, and value addition (such as baking using locally available ingredients).

Furthermore, to assure long-term sustainability, the project has established a Special Purpose Vehicle (SPV), with the village community as the majority shareholder (51%). The community will maintain ownership via the establishment of a PT Holding incorporating the five village-owned companies (BUMDes).  The five BUMDes have been established, one in each village, with 52 BUMDes management members receiving trainings and mentoring in management and entrepreneurship.

“The SPV management model with BUMDes’ involvement was identified as the most appropriate for the long-term management of the system, given the structural requirements of the MCC project and the available resources to implement the project. By adopting this model, communities have a voice to participate in this project so as to further realize results for the benefit of the people,” said Architrandi Priambodo, Non-construction Team Leader, Castlerock Consulting, a member of the three-way consortium between Anekatek Consultants, Castlerock Consulting, and SEI.

Priambodo concluded, “The implemented approach has enabled us to realize the main goal of the MCC project, which was to accelerate development of small-scale renewable energy power generation facilities that include elements of participatory ownership, management, maintenance and operation from community members for local consumption in rural, and usually remote, locations, specifically the five villages in East Sumba.”

“The technical and sales model that we have deployed in Sumba through this MCC project are highly replicable and inherently scalable.  The systems that were built through this project provide a revolutionary new model and example for future rural electrification efforts across Indonesia, and the region,” said Matthew Basinger, Director, PT Anekatek Consultants, the consortium lead of the implementing partner for the project.

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