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Empowering communities – the role of intermediary organisations in community renewable energy projects in Indonesia

Guerreiro, Susana / Botetzagias, Iosif

Community Renewable Energy (CRE) has been defying conventional energy systems for decades, though only recently it started to feature in academic and institutional discourses. Despite its new appeal, the literature on the impacts and factors influencing CRE projects is still scarce and builds mostly on studies in Europe and North America. In developing countries, where electricity access is low and energy poverty is prevalent, CRE can offer interesting opportunities for rural electrification and added benefits. The objective of this study is to assess the impacts of community-owned renewable energy projects and identify the internal and external drivers and barriers to their success. An exploratory case-study approach was used for collecting data, through interviews and observations, in two community micro-hydro projects in Indonesia. The results showed positive socio-economic impacts that exceed electrification benefits, and the reported success of community energy projects can be traced back to a combination of community-level as well as external factors. Yet, particularly important is the role of the intermediary organisation (Ibeka) in building communities’ ownership, enhancing (technical, entrepreneurial and managerial) capacities, transferring knowledge and technology, establishing innovative financing models and shaping policy. Such organisations are critical in bridging external and internal factors and thus represent a key element in integrating the proposed analytical frameworks.