Jakarta, April 24, 2025 – Amidst geographical challenges and limited electricity networks in some hard-to-reach areas, various countries around the world have designed approaches that prioritize community participation and utilize local renewable energy potential such as solar energy, micro hydro, and biomass. Through a participatory and sustainable approach through energy decentralization, it can provide economic, social, and educational opportunities that were previously difficult for remote communities to reach.
One inspiring approach comes from Goparity, a European crowdfunding platform that has funded more than 400 projects in 19 countries.
Nuno Brito Jorge, founder and CEO of Goparity explained that his party actively invites the wider community to divest from destructive industries and shift their investments to sustainable projects. For example, in the solaris project, they invite residents of big cities like Barcelona to participate in investing in solar power plants. This initiative creates a sense of shared ownership of the energy transition.
“Not only that, there is also a solar community project where we play a role in supporting the construction of a 4 MW solar power plant. This project allows people to buy electricity directly from producers at near-zero costs, and gain financial benefits from their investment. With these various projects, it is proof that the energy transition is not only owned by large corporations, but can also be driven by the global community through a collaborative and inclusive approach,” said Nuno.
Ira Palupi, Senior Project Officer (Infrastructure), ADB Representative Office in Indonesia explained that her party through the Result-Based Lending (RBL) program supports PLN to increase the capacity of small-scale solar-based energy plants (PLTS), microhydro, and biogas. Until 2024, there are 184 off-grid power plants included in this program, with an additional 5 new PLTS projects in the current year. However, limited financing, the absence of APBN funds in the last two years, and geographical and logistical challenges, including the impact of the COVID-19 pandemic, are significant obstacles in the implementation of these projects.
“To overcome these obstacles, innovative financing mechanisms are implemented. Among them are Disbursement-Linked Indicators (DLI), where PLN can only receive loans and grants if certain electricity production targets have been achieved. ADB also runs other schemes such as blended finance and Public-Private Partnership (PPP) in supporting the Eastern Indonesia Renewable Energy program, including grant funds from the Canadian government to encourage private sector participation,” explained Ira.
Natharoun Ngo Son, Director of EnergyLab Asia stated that Ratanakiri Province, located in the northwest of Cambodia, is inhabited by many indigenous communities that are marginalized from development, mainly due to their very remote location. One of the main challenges facing this region is access to electricity. Most villages are not connected to the national electricity grid, and network extension is considered economically and logistically unfeasible, even today.
“One important initiative is the construction of a solar-powered mini-grid system in Pa Tang Village, which is home to less than 400 people. This project addresses a range of issues, including lack of access to electricity, low literacy rates, limited purchasing power, and dependence on firewood for cooking. All of this makes it difficult to provide basic services such as education, health, and information, which risks perpetuating the cycle of poverty and social exclusion,” Son said.
Son believes that this case study is a concrete example of how decentralized energy can reach the last mile of society and have a significant social impact. At the national level, Cambodia has seen an increase in electrification from just 23% of households in 2010 to more than 95% in 2024. However, around 120 villages are still unconnected, indicating that there is still a critical gap in achieving electricity access.
Julio Retana, Team Leader of the MENTARI (Towards Indonesia’s Low Carbon Energy Transition) Project in the UK, said that one important lesson learned from the Mentari program is that the ability of communities to pay their electricity bills alone does not guarantee sustainability. The risk of default is very high, and without a strong economic strategy, the village electricity system could slowly die. Therefore, his party invested in the “productive use of energy”—ensuring that energy is used for productive economic activities, not just for lighting homes.
“For example, building a workstation for processing crops, where village farmers can sell at a better price through aggregation, negotiation, and logistics coordination. The profits are shared with the cooperative or village government, and some are used to finance the maintenance of the electricity system. Even when the village electricity unit does not produce enough to cover operational and monitoring costs, village agribusinesses step in to cover the shortfall,” said Julio.
Aang Darmawan, Senior Advisor for Energy, United Nations Development Programme Indonesia, shared several important lessons from the ACCESS project in Indonesia that focuses on providing clean and affordable energy in remote areas. First, government involvement is essential to ensure that the project is in line with the national agenda and supports the sustainability of the program. Second, technological education for the community is crucial so that they are not only beneficiaries, but also able to manage and maintain the energy system independently. Third, convincing local leaders about the benefits of electricity plays a major role in building community support. Not only the benefits, the risks and consequences of the presence of electricity also need to be communicated, including the potential involvement of women and girls as operators and agents of change in their villages.
“The sustainability and continuity of village energy is highly dependent on the role of “local champions” – local figures who are trusted and able to be drivers in the implementation and maintenance of the energy system. Energy is not just light, but the foundation for a more just and empowered life,” he explained.
Marc Schmidt, Managing Director and Partner, Boston Consulting Group Singapore emphasized that in an effort to encourage a just and sustainable energy transition, his party together with the Asia Venture Philanthropy Network (AVPN) has started an important initiative, namely redesigning the energy transition approach to be more human-centered. While infrastructure remains the backbone of energy transition efforts, data shows that only a small portion of investment is allocated to initiatives that directly touch the lives of people, workers, and local communities.
Mark underlines that there are three levels of action to drive the energy transition based on our analysis. First, integrating social aspects into national roadmaps and policies from the early planning stage. Second, designing specific interventions for each affected group, so that it is not just an afterthought. Third, building financial support through blended finance, strengthening the public narrative, and encouraging collaboration between stakeholders.
