Simulation of economic effect on electricity democracy based on clean energy at UMKM'S IPP in Indonesia

Abstract

The facts show that most large-scale power projects in Indonesia cannot be completed on schedule. The reason is related to the dynamic constraints such as legal, political, economic, social and cultural issues. In general, there is a potential of community empowerment approach using a small size plant has not been done. Such approach may give a lot of advantages including shorter construction time and easier to use clean energy like solar, wind, and waste or biomass which is available around us. Constructing 1000 units of 1 MW power plant simultaneously will have similar capacity with the construction of one 1000 MW power plant unit that had so many obstacles. Another important advantage is that this kind of plant can be self-managed under the ownership of local communities that can empower local businesses to become small- scale IPP developers with simple technology and small capital costs. This paper will examine the economical impact of local people's electrical self-management known as IPP UMKM by simulating several scenarios.