Management of Rural Electricity Projects (REPs) for Sustainable Energy Efficiency.
MANAGEMENT OF RURAL ELECTRICITY PROJECTs (REPs) FOR
SUSTAINABLE ENERGY EFFICIENCY
Author Name : Ir. Nyoman Martha Jaya, M.Const.Mgt., Ph.D., GCInstCES
Affiliation
: Civil Engineering Department, the University of Udayana, Denpasar, Bali.
Postal address: Jln. Pancoran 3A/11 Panjer, Denpasar, Bali, Indonesia
Email:
: nmjaya@unud.ac.id
Phone
: 082236604622
Fax
: NA
MANAGEMENT OF RURAL ELECTRICITY PROJECTs (REPs) FOR
SUSTAINABLE ENERGY EFFICIENCY
Nyoman M Jaya
Civil Engineering Department, the University of Udayana, Denpasar, Bali, Indonesia
Corresponding author: nmjaya@unud.ac.id
Abstract:
Seventeen thousand islands have spread out from West (Sabang) to East (Merauke) of Indonesia.
The rural electricity access is inevitably very important for sustainable lives of communities.
Many rural areas have not yet getting access for electricity as a basic need for local economic
development opportunities and appropriate technology for improving knowledge and better
future generations.
World Bank has funded the first stage Rural Electricity Projects (REPs) since early 1990s
through Loan 3180-IND. The second REPs program was implemented between 1995 and 2000.
Main objectives of the REPs program was continuing implementation of rural electrification
programs for sustainable energy efficiencies, improving scope and supply new electrical powers
for rural areas through gradual investment programs.
Master plan and budgeting of the REPs would adopt “least-cost concepts” with subsidiary, which
is expected would provide incentives or added values for private sectors and local community
businesses to take more chances and higher opportunities in new energy distributions. Therefore,
it was continuously developed implementation of the REPs management for planning,
organising, monitoring and controlling, especially for regional characteristics in Indonesia.
Keyword: local community business, management, rural electricity, project, social economic,
1. Introduction
The REPs project is considered as the part of long term programs in providing basic services for
an electrical energy to rural areas. It is in line with policies of Indonesian Government for
improving social community prosperity; stimulate social economic activities and drive rural
economic development. Main components of the REPs program, included:
Provide electricity for 7,000 rural areas in Indonesia, including 2.1 million families as the
priority customers.
Participation of local community and private corporations in improving rural electricity
programs especially for small scale electric generators through new energy resource
development.
Development of 7.5 Mega Watt (MW) mini-hydro projects and field exploration of minigeothermal.
Technical assistances during planning and implementation of REPs.
Beside successful implementation of initial REPs programs in stimulating economic activities for
social communities, also, it was remaining financial equities, due to macro-economic condition
in 1998, causing this program down-graded before meeting their objectives.
However, REPs implementation is remaining good lesson-learned in project management for
planning, organising, monitoring and controlling activities. Therefore the existing program and
implementation would be improved for future REP which considers following aspects/ criteria:
The REPs must be supported by sustainable funding.
Institution and project implementation in charged should be technically and financially
accountable.
Holding management is responsible in technical and financial performances for
maximum efficiency of REPs services.
Program promotion should be effectively improved REP benefit including social
economics and financial incomes.
Key consuming category must be considered as better performance indicators, rather than
total amount of electricity-line connected.
Centralised project management can be considered only for effectively monitoring
project progress, but it is not effective for anticipating and driving changes of regional
implementation of REPs.
Complexities of procurement process often cause purchasing barriers and inefficiencies.
Funding commitment and accessible systems for prompt and accurate information are
very essential for effective management and improving efficiency of REPs
implementation in Indonesia.
2. Discussion
Indonesian government has implemented the two periods of rural electrification programs, which
began in early 1990s. However, they did not achieve maximum targets of the program. Due to
inefficiencies; local communities have not enough knowledge and skills for participating in the
projects and it may be lot of corruptions in the system, although they have been provided a
program of technical assistances. The rural corporation unit, such as Koperasi Unit Desa (KUD)
has also endeavoured to participate in the projects, but they still lack of professional in practice
at the time the project should be started for implementation. Private companies as the legal local
business for expected profits would argue, running join corporations with the lack of
professionalism and unskilled local communities may face higher risks of deficit and threatened
saving. The government and private companies have attempted to work together on board for
providing electricity to the rural areas. However, the progress still less and does not touch the
rural social community as the main target of the program. The project of Public-Private
Partnerships (PPP’s project) did not work properly, and the progress is quite slow.
The problem can be overcome by developing mutual partnerships between local-concerned and
genius such as: local government, local private businesses, local KUD/ social community groups,
local university partners, Non-Government Organisations (NGOs), and others. The United
Nations Development Program (UNDP) identifies Pro-Poor Public-Private Partnerships (5Ps)
between those who ‘faith-based’ can help improving rural area accesses for basic prosperity
services including clean water facilities, Rural Electricity Projects (REPs), etc.
The 5Ps method would bring the government, the universities, the private companies, the NGOs
and the local people to work together and share the risk to achieve the common goal. The profit
of this program comes from blended social concerns and empowering targeted social
communities. Each party can play a different role in this program: Private sector can meet their
corporate social responsibility obligations, the government can fulfil their obligation to deliver
basic service needs to the people, NGOs can meet their goal to help the community, while the
community can no longer act as merely beneficiaries but also as partner in the business venture.
NGOs has been successfully brought the 5Ps method implemented in Indonesia. Its aim is to
improve economic conditions of rural communities through village infrastructure development.
Such development includes access to electricity, clean water facilities and using appropriate
technology such as wind power, wave energy, solar energy, micro-hydro power, geo-thermal,
etc.
3. Summary
The Rural Electricity Projects (REPs) is inevitably important for sustaining local economic
activities through developing ‘faith-based’ integrity (5Ps) between the local government, the
universities, the rural corporation units or social community groups, the NGOs, and the other
‘pro-poor’ to improve effective management and efficiency.
It should be properly planed, organised the project integration and scope based on the local
characteristics, decentralised effective monitoring and controlling systems for improving
efficiency.
Bibliographies:
PLN - 2012
RUKN – National General Electricity Planning.
Reinders, A., Rural Electrification Projects for Sustainable Energy Access in Remote Indonesia
Communities. 5th Alliance for Rural Electrification Workshops, Join Research between
Academia and the Industry: Bring new opportunities to the Renewable Energy Sectors.
University of Twente, Departmen of Design, Production and Management, Faculty of
Enggineering Technology, the Nenerlands.
Winoto, A.T., Marliska, E.D., Prasetyo, M.H., and Simangunsong, S., (2012). Rural
Electrification in Indonesia, Target and Development, Website: http://energyindonesia.com/03dge/05chiho.pdf, Accessed: Nov. 2015.
Wijaya, Y.S., (Year). Feasible Solution for Indonesia’s Rural Electrification Problems. Jakarta
Globe, Website: http://jakartaglobe.beritasatu.com/archive/feasible-solution-to-indonesias-ruralelectrification-problem/, Accessed: Nov. 2015.
SUSTAINABLE ENERGY EFFICIENCY
Author Name : Ir. Nyoman Martha Jaya, M.Const.Mgt., Ph.D., GCInstCES
Affiliation
: Civil Engineering Department, the University of Udayana, Denpasar, Bali.
Postal address: Jln. Pancoran 3A/11 Panjer, Denpasar, Bali, Indonesia
Email:
: nmjaya@unud.ac.id
Phone
: 082236604622
Fax
: NA
MANAGEMENT OF RURAL ELECTRICITY PROJECTs (REPs) FOR
SUSTAINABLE ENERGY EFFICIENCY
Nyoman M Jaya
Civil Engineering Department, the University of Udayana, Denpasar, Bali, Indonesia
Corresponding author: nmjaya@unud.ac.id
Abstract:
Seventeen thousand islands have spread out from West (Sabang) to East (Merauke) of Indonesia.
The rural electricity access is inevitably very important for sustainable lives of communities.
Many rural areas have not yet getting access for electricity as a basic need for local economic
development opportunities and appropriate technology for improving knowledge and better
future generations.
World Bank has funded the first stage Rural Electricity Projects (REPs) since early 1990s
through Loan 3180-IND. The second REPs program was implemented between 1995 and 2000.
Main objectives of the REPs program was continuing implementation of rural electrification
programs for sustainable energy efficiencies, improving scope and supply new electrical powers
for rural areas through gradual investment programs.
Master plan and budgeting of the REPs would adopt “least-cost concepts” with subsidiary, which
is expected would provide incentives or added values for private sectors and local community
businesses to take more chances and higher opportunities in new energy distributions. Therefore,
it was continuously developed implementation of the REPs management for planning,
organising, monitoring and controlling, especially for regional characteristics in Indonesia.
Keyword: local community business, management, rural electricity, project, social economic,
1. Introduction
The REPs project is considered as the part of long term programs in providing basic services for
an electrical energy to rural areas. It is in line with policies of Indonesian Government for
improving social community prosperity; stimulate social economic activities and drive rural
economic development. Main components of the REPs program, included:
Provide electricity for 7,000 rural areas in Indonesia, including 2.1 million families as the
priority customers.
Participation of local community and private corporations in improving rural electricity
programs especially for small scale electric generators through new energy resource
development.
Development of 7.5 Mega Watt (MW) mini-hydro projects and field exploration of minigeothermal.
Technical assistances during planning and implementation of REPs.
Beside successful implementation of initial REPs programs in stimulating economic activities for
social communities, also, it was remaining financial equities, due to macro-economic condition
in 1998, causing this program down-graded before meeting their objectives.
However, REPs implementation is remaining good lesson-learned in project management for
planning, organising, monitoring and controlling activities. Therefore the existing program and
implementation would be improved for future REP which considers following aspects/ criteria:
The REPs must be supported by sustainable funding.
Institution and project implementation in charged should be technically and financially
accountable.
Holding management is responsible in technical and financial performances for
maximum efficiency of REPs services.
Program promotion should be effectively improved REP benefit including social
economics and financial incomes.
Key consuming category must be considered as better performance indicators, rather than
total amount of electricity-line connected.
Centralised project management can be considered only for effectively monitoring
project progress, but it is not effective for anticipating and driving changes of regional
implementation of REPs.
Complexities of procurement process often cause purchasing barriers and inefficiencies.
Funding commitment and accessible systems for prompt and accurate information are
very essential for effective management and improving efficiency of REPs
implementation in Indonesia.
2. Discussion
Indonesian government has implemented the two periods of rural electrification programs, which
began in early 1990s. However, they did not achieve maximum targets of the program. Due to
inefficiencies; local communities have not enough knowledge and skills for participating in the
projects and it may be lot of corruptions in the system, although they have been provided a
program of technical assistances. The rural corporation unit, such as Koperasi Unit Desa (KUD)
has also endeavoured to participate in the projects, but they still lack of professional in practice
at the time the project should be started for implementation. Private companies as the legal local
business for expected profits would argue, running join corporations with the lack of
professionalism and unskilled local communities may face higher risks of deficit and threatened
saving. The government and private companies have attempted to work together on board for
providing electricity to the rural areas. However, the progress still less and does not touch the
rural social community as the main target of the program. The project of Public-Private
Partnerships (PPP’s project) did not work properly, and the progress is quite slow.
The problem can be overcome by developing mutual partnerships between local-concerned and
genius such as: local government, local private businesses, local KUD/ social community groups,
local university partners, Non-Government Organisations (NGOs), and others. The United
Nations Development Program (UNDP) identifies Pro-Poor Public-Private Partnerships (5Ps)
between those who ‘faith-based’ can help improving rural area accesses for basic prosperity
services including clean water facilities, Rural Electricity Projects (REPs), etc.
The 5Ps method would bring the government, the universities, the private companies, the NGOs
and the local people to work together and share the risk to achieve the common goal. The profit
of this program comes from blended social concerns and empowering targeted social
communities. Each party can play a different role in this program: Private sector can meet their
corporate social responsibility obligations, the government can fulfil their obligation to deliver
basic service needs to the people, NGOs can meet their goal to help the community, while the
community can no longer act as merely beneficiaries but also as partner in the business venture.
NGOs has been successfully brought the 5Ps method implemented in Indonesia. Its aim is to
improve economic conditions of rural communities through village infrastructure development.
Such development includes access to electricity, clean water facilities and using appropriate
technology such as wind power, wave energy, solar energy, micro-hydro power, geo-thermal,
etc.
3. Summary
The Rural Electricity Projects (REPs) is inevitably important for sustaining local economic
activities through developing ‘faith-based’ integrity (5Ps) between the local government, the
universities, the rural corporation units or social community groups, the NGOs, and the other
‘pro-poor’ to improve effective management and efficiency.
It should be properly planed, organised the project integration and scope based on the local
characteristics, decentralised effective monitoring and controlling systems for improving
efficiency.
Bibliographies:
PLN - 2012
RUKN – National General Electricity Planning.
Reinders, A., Rural Electrification Projects for Sustainable Energy Access in Remote Indonesia
Communities. 5th Alliance for Rural Electrification Workshops, Join Research between
Academia and the Industry: Bring new opportunities to the Renewable Energy Sectors.
University of Twente, Departmen of Design, Production and Management, Faculty of
Enggineering Technology, the Nenerlands.
Winoto, A.T., Marliska, E.D., Prasetyo, M.H., and Simangunsong, S., (2012). Rural
Electrification in Indonesia, Target and Development, Website: http://energyindonesia.com/03dge/05chiho.pdf, Accessed: Nov. 2015.
Wijaya, Y.S., (Year). Feasible Solution for Indonesia’s Rural Electrification Problems. Jakarta
Globe, Website: http://jakartaglobe.beritasatu.com/archive/feasible-solution-to-indonesias-ruralelectrification-problem/, Accessed: Nov. 2015.