Identification of Energy-related Needs and Priorities of ... · ST. Identification of...
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CAREPI TECHNICAL TEAM FOR YOGYAKARTA AND CENTRAL JAVA Version 1 : 3/23/2009 Authored by: Sri Atmaja P. Rosyidi, Ph.D.; Lilis Setiartiti, MS.; Surya Budi Lesmana, M.Eng., Saibun, ST. Identification of Energy-related Needs and Priorities of Poor Communities in Karangmojo, Yogyakarta A Report of Work Package 2
Transcript of Identification of Energy-related Needs and Priorities of ... · ST. Identification of...
CAREPI TECHNICAL TEAM FOR YOGYAKARTA AND CENTRAL JAVA
Version 1 : 3/23/2009
Authored by: Sri Atmaja P. Rosyidi, Ph.D.; Lilis Setiartiti, MS.; Surya Budi Lesmana, M.Eng., Saibun, ST.
Identification of Energy-related Needs and Priorities of Poor Communities in Karangmojo,
Yogyakarta
A Report of Work Package 2
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IDENTIFICATION OF ENERGY‐RELATED NEEDS AND PRIORITIES OF POOR COMMUNITIES IN KARANGMOJO, YOGYAKARTA
A Report of Work Package 2
CAREPI TECHNICAL TEAM
OF
YOGYAKARTA AND CENTRAL JAVA REGION
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WP‐2 REPORT
Identification of Energy‐related Needs and Priorities of Poor Communities in Karangmojo, Yogyakarta
Written by:
Sri Atmaja P. Rosyidi, Ph.D.; Lilis Setiartiti, MS.; Surya Budi Lesmana, M.Eng., Saibun, ST.
Supervised by:
Nico H. van der Linden, MSc.; Koen E.L. Smekens, MSc; Oetomo Tri Winarno, MT.
Assisted by:
Pamungkas Jutta P., Aprilia K. (PUSPER UMY)
© 2009 CAREPI
http://www.carepi.info
March 2009
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Contents CONTENTS............................................................................................................................................. 3
1.1 ENERGY NEED ASSESSMENT .......................................................................................................... 6
1.2 METHODOLOGY FOR ENERGY NEED ASSESSMENT..................................................................... 6
1.3 PROPOSED ENERGY PROGRAMME................................................................................................. 7
2.1 GEOGRAPHICAL FEATURE, ADMINISTRATIVE BOUNDARIES AND CULTURAL IDENTITY ... 9 2.2 DEMOGRAPHY, SOCIAL AND ECONOMIC CHARACTERISTIC ................................................ 12
3.1 INTRODUCTION OF PARTICIPATORY RURAL APPRAISAL (PRA) ............................ 15
1. THE OBJECTIVE OF PRA............................................................................................................. 15 2. KEY VIEW OF PRA...................................................................................................................... 15 3. PRA TOOLS AND PARTICIPATORY METHOD OF DATA COLLECTION .................................. 16 4. ORGANIZING PRA....................................................................................................................... 17
3.2 DESIGN AND IMPLEMENTATION OF PARTICIPATORY RURAL APPRAISAL (PRA) ON ENERGY NEEDS ASSESSMENT.......................................................... 18
1. ACTORS OF PRA WORKS ON ENERGY NEEDS ASSESSMENT .................................................. 18 2. DESIGN AND IMPLEMENTATION OF PRA WORKS ON ENERGY NEEDS ASSESSMENT.......... 19
4.1 CURRENT ENERGY SITUATION AND CONSUMPTION ................................................................ 29
4.2 ENERGY PROBLEMS ...................................................................................................................... 31
4.3 RENEWABLE ENERGY POTENTIALS ............................................................................................ 32
4.4 STAKEHOLDERS ANALYSIS FROM FGD ON ENERGY DEVELOPMENT IN KARANGMOJO ..................................................................................................................................... 33
5.1 POTENTIAL PROPOSED ENERGY PROGRAMMES ......................................................... 37
5.2 TARGET GROUP........................................................................................................................ 38
5.3 BGEP (BIOGASS ENERGY PROGRAMME) .................................................................................... 38
5.3.1 BACKGROUND........................................................................................................................ 38 5.3.2 BIOGAS COMPOSITION.......................................................................................................... 38 5.3.3 BIOGAS REACTOR .................................................................................................................. 38 5.3.4 CONSTRUCTION COST AND ECONOMIC ANALYSIS............................................................ 39
1).BENEFIT AND COST ANALYSIS.............................................................................................. 40 2) PAY BACK PERIOD.................................................................................................................. 41
5.3.5 ENERGY CONSERVATION ...................................................................................................... 42
5.4 BIODIESEL ENERGY PROGRAMME (BDEP) ................................................................................ 42
5.4.1 BACKGROUND........................................................................................................................ 43 5.4.2 COMPOSITION OF JATROPHA OIL........................................................................................ 43 5.4.3 JATROPHA OIL PRODUCTION............................................................................................... 45 5.4.4 JATROPHA OIL STOVE FOR HOUSEHOLD AND ECONOMICAL ANALYSIS ........................ 46
1) PROPOSED STOVE .................................................................................................................. 46
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2) ECONOMICAL ANALYSIS FOR PROPOSED STOVE ................................................................ 47 5.4.5 JATROPHA OIL FOR WATER PUMP GENERATOR (ECONOMIC ANALYSIS) ....................... 48
5.5. BIOMASS ENERGY PACKAGE (BMEP) FROM RICE HUSK............................................ 50
5.5.1 BIOMASS GASIFICATION OF RICE HUSK FOR LOCAL ENTREPRENEURS ........................... 50 5.5.2 ECONOMICAL ANALYSIS OF BIOMASS GASIFICATION OF RICE HUSK.............................. 51
5.6 STAKEHOLDER ANALYSIS FOR IMPLEMENTING THE PROPOSED PROGRAMME..................... 52
5.6.1 INSTITUTIONAL SET-UP FOR MANAGING ENERGY INFRASTRUCTURE ............................ 52 5.6.2 FINANCING SCHEME FOR THE PROPOSED PROGRAMMES.................................................. 54
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INTRODUCTION
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1.1 Energy Need Assessment
In Indonesia, people living in urban areas generally have access to efficient and modern energy supplies. However, in the rural community, are generally less fortunate and rely on traditional fuel of firewood, or energy and electricity production system are costly and inefficient. CAREPI work package 2 of Identification of Energy-related Needs and Priorities of Poor Communities is to establish the energy-related priorities of poor communities in the selected location at Province of Yogyakarta and Central Java. Although previous research already provides a fairly clear picture of the energy-related needs of poor communities in Indonesia, it is still advisable to confirm these with regard to the local specifics in a participative way in the selected locations, since this is part of the process aimed at enhancing the involvement of the local communities in the CAREPI project.
In this programme, Kecamatan Karangmojo which is located in Gunungkidul regency was chosen for implementation of WP 2 in CAREPI programme for Yogyakarta province. Gunung Kidul district is one of 5 Regencies in Yogyakarta. The area of Gunungkidul is plateau and dominated by hilly areas. This condition has made Gunungkidul known as the hilly side of Yogyakarta (exactly reflecting the name “Gunungkidul”/southern mountains). The south border of the district is Indian Ocean or in local words “Laut Selatan”. However, the community in Gunungkidul regency who lives under poverty level is a largest compared to other regencies (Table 1.1). By this reason, the WP-2 programme is implemented in Kecamatan Karangmojo, Kabupaten Gunugkidul. This location was selected based on the several considered aspect, as follows:
Low-income rural communities,
Form of energy which is currently used for domestic activities, community services and small business is concentrated in firewood and kerosene,
There is renewable energy potentials and sources are available locally,
The social background and characteristics on selected communities are considered (in order to implement the energy policies successfully and sustainable).
Detail profile of Kecamatan Karangmojo is presented in chapter 2. Thus, the renewable energy potential and the energy problem which is faced on the community in Kecamatan Karangmojo is completely discussed in Chapter 3.
1.2 Methodology for Energy Need Assessment
The participatory rural appraisal was selected for conducting the energy need assessment in Kecamatan Karangmojo. The PRA is well known technique which can be an effective method for analyzing the needs assessment of energy in rural community. When the energy policy such as increasing energy access program for poor community will be implemented, the market or needs evaluation should be conducted in order to observe in which service are actually required from the various energy technologies. This approach often means that the technology is not economically viable as it is underutilized or it is so unreliable that the
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communities stop using the proposed programme and technology and return to their traditional energy sources. In order to fulfill actual energy needs successfully, the PRA approach to provision of the energy options for rural communities in selected villages must emphasize to provide the reliable analysis and assessment. The completed discussion on this PRA method is described in Chapter 4.
1.3 Proposed Energy Programme
Four proposed energy programmes have been resulted based on the study of the PRA result and the survey on the renewable energy potentials in Kecamatan Karangmojo which is discussed in Chapter 5. The detail programme consists of the design of infrastructures, economical analysis (cost, benefit and saving), and pay-back period for feasibility on the investment. A stakeholder analysis was also conducted in order to break down the participation and roles that played by stakeholders for delivering the proposed programme successfully. The proposed financing schemes is also discussed in the last of Chapter 5.
Table 1.1: Community Who Lives in Three Poverty Categories for 5 Regencies in Yogyakarta Province (BPS Data)
Category Region
Nearly Poor Poor Fakir
Total
Kulonprogo 15136 20581 6628 42345
Bantul 21488 35697 7201 64386
Gunungkidul 46300 32442 16980 95722
Sleman 14185 30571 8220 52976
Yogyakarta 8482 10789 410 19681
D.I. Yogyakarta 105591 130080 39439 275110
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PROFILE OF KECAMATAN KARANGMOJO: SELECTED LOCATION FOR ENERGY NEEDS
ASSESSMENT
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2 .1 Geographical Feature, Administrative Boundaries and Cultural Identity
Kecamatan Karangmojo (Karangmojo Sub-district) is administratively located in Gunungkidul Regency. Gunungkidul is one of four regencies (i.e. Kulon Progo, Bantul, Gunungkidul and Sleman regencies) and one municipality (i.e. Yogyakarta Municipality) under the administration of the Daerah Istimewa Yogyakarta (DIY). Total area of Gunungkidul Regency is approximately 1500 km2 and is the largest the regency of DIY (46 % of total DIY area). Generally, Gunung Kidul is categorized as dry and arid zone of the DIY. Based on geographical feature, Kecamatan Karangmojo is situated at 105 m ASL with the large parts of the area is known as conical karsts with relatively plain/flat (slope of 0 – 2 % is approximately 63 %) and hilly (slope of 2 – 15 % and 15 – 40 % is about 30 % and 7 %, respectively) topography condition. The figure of topography area is shown in Figure 2.1. The average annual rainfall is about 3,100 mm. Kecamatan Karangmojo is located in the eastern area which is 10 km from “Wonosari”, a capital of Gunungkidul Regency. Location of Kecamatan Karangmojo is shown in Figure 2.2. Administratively, Kecamatan Karangmojo has the boundary in the north with Kecamatan Nglipar and Kecamatan Semin, in the south with Kecamatan Semanu, in the east with Kecamatan Ponjong and in the west with Kecamatan Wonosari.
Figure 2.1: Topography map of Kecamatan Karangmojo
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Figure 2.2: Map of Kecamatan Karangmojo
Karangmojo
Total area of Kecamatan Karangmojo in 2006, is approximately 80.12 km2 which is divided into 9 Villages (Desa/Kelurahan), 104 Hamlets (Dusun), 117 RW and 485 RT. The capital of Kecamatan Karangmojo is in Gedangrejo Village. Table 2.1 shows the distance from the centre of sub-district administrative office (Kantor Kecamatan) to the villages in Kecamatan Karangmojo. Most area is used for plantation which includes dried farming (lahan tanah kering) and national forests, while the remaining area is used for rice farming (lahan sawah) and Sultan ground.
Nine villages in Kecamatan Karangmojo have status of “desa swadaya” which it means that all villages is categorized as a traditional village due to the average educational level of community is still low, the production only meets to the daily household needs and the limited communication with other villages.
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Table 2.1: Distance from the centre of sub-district office Karangmojo to the villages (in km)
Village (Desa) Distance (km)
Bendungan 5
Bejirejo 6
Wiladeg 4
Kelor 2
Ngipak 1
Karangmojo 1
Gedangrejo 0
Ngawis 2
Jatiayu 6
Source : Kecamatan Karangmojo Dalam Angka, 2006
As one of the cultural preservation areas with regards to its historical value, this region is very important to be conserved in the efforts to sustain the development of cultural history and human civilization. The cultural assets in Kecamatan Karangmojo include the artifacts of the classical period, the Islamic period, and the historical period in the forms of menhir, sarcophagus, and megalithic structures. At least up to this moment, there are 48 historical sites and 11 villages’ cultural-based assets. Those historical sites are located on the riverbanks and rice fields in the several sub-districts including Karangmojo.
Yet, the current conservation activities have not been done optimally, causing the loss of cultural assets and sites as well; even they are not placed where they are supposed to. This is due to the lack of the education and awareness of the community about the conservation of their cultural assets. The value system of Karangmojo community is popularly known as “guyub rukun”. Several potentials and constraints in the cultural aspect are as follows:
• The local custom of an agrarian traditional society is still strong, this should not become constraints for development, but in several areas it will reduce the level of motivation for development.
• The attention towards the development of cultural potentials is still minimal. Due to the homogenous cultural assets, it is necessary to see the uniqueness of the potential cultural assets to be “sold” for cultural events and tourism. Those potentials are physical cultural
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assets having not been used optimally, such as the cultural sites and traditional house; and unique non-physical cultural assets including the traditional arts of gejog lesung, campursari, shalawatan, reog, and jathilan. They are still kept alive in the society, even though in a static condition.
2.2 Demography, Social and Economic Characteristic
Generally, the real social and economical condition in Karangmojo community can be decribed from the demography, social and economic activities of the community itself. The population of Kecamatan Karangmojo in 2007 is 52,014 people which are distributed in 14,369 households. Distribution of Karangmojo’s population in villages is listed in Table 2.2. About 8,621 households (60 %) are working on ”farming sector” as a farming worker (buruh petani ladang). Another economic activity that is usually carried out by Karangmojo community is selling the dried-leaves from Tectona grandis/teak tree (daun Jati) and wood for cooking which are taken from forests. The average income per household based on these economic activities is about Rp. (IDR) 20,000/day (selling the firewood, leaves, farmer, etc.) According to the gender, the proportion of male and female is 51.15 % (26,605 person) and 48.85 % (25,409 person) respectively. The population growth of Kecamatan Karangmojo in 2007 is 0.15%.
Table 2.2: Population of Kecamatan Karangmojo in Villages (for 2007)
POPULATION No. Village (Desa)
Male Female Total 1 Bendungan 981 1,131 2,112
2 Wiladeg 1,976 2,136 4,112
3 Kelor 1,394 1,421 2,815
4 Ngipak 1,506 1,636 3,142
5 Karangmojo 3,648 3,822 7,470
6 Gedangrejo 2,647 2,801 5,448
7 Ngawis 1,751 1,922 3,673
8 Bejiarjo 7,721 8,049 15,770
9 Jatiayu 3,785 3,687 7,472
Total 25,409 26,605 52,014
Source : Profil Kecamatan Karangmojo, 2007
Based on economical activities, Kecamatan Karangmojo is categorized as ” kawasan tertinggal dan tumbuh lambat” (backward district and slow growth), This district category usually has relative static growth of social
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and economic activities, It can be identfified by the number of poor households in Kecamatan Karangmojo which is still relatively high, amounting to 38.2 % of the total households.
The public facilities or services in terms of educational and health/medical services are available for Kecamatan Karangmojo community. Table 2.3 presents the educational and medical facilities are provided in Kecamatan Karangmojo.
Table 2.3: Public Facilities in di Kecamatan Karangmojo (2005- 2006)
Medical Facilities Educational Facilities SD SLTP SLTA
Year Public Health Centre
Pustu Childbirth Clinic
Sub PPKBD
TK Public Private Public Private Public Private
2005
9 2 4 9 39 38 4 4 3 1 2
2006
9 2 4 9 39 40 3 4 3 1 2
TK = kindergarten, SD = Elementary School, SMP = Junior High School, SLTA = Senior High School Source: Kecamatan Karangmojo Dalam Angka, 2006 Economic performance of Kecamatan Karangmojo can be summarized from their GDP (gross domestic products) as shown in Table 2.4. The agriculture sector was the backbone of the local economy, contributing 43.39 % to the total GDP in 2006. The trade sector contributed 13.56 %, which was followed by the service and industrial sector with the contribution of 12.62 % and 11.92 % respectively.
The high agricultural sector contributed in the GDP originates from the five sub-sectors of food crops, plantation, animal husbandry and its products, and forestry. Kecamatan Karangmojo is one from two Kecamatan to support the rice production for Gunungkidul Regency.
Table 2.4: Gross Domestic Products of Kecamatan Karangmojo in 2006
No Sector GDP
(Million IDR/Rp.)
Percentage
1 Agriculture 93.497 43.39
2 Mining 8.996 4.17
3 Industry 25.695 11.92 4 Electricity. Gas. and
Water 1.042 0.48
5 Construction 16.820 7.81
6 Trade 29.231 13.56 7 Transportation and 6.441 2.99
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Telecommunication
8 Finance 6.574 3.05 9 Service 27.202 12.62
Total of GDP 215.499 100.00 Source : Kecamatan Karangmojo Dalam Angka. 2006
PARTICIPATORY RURAL APPRAISAL (PRA) FOR ENERGY NEEDS ASSESSMENT
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3.1 INTRODUCTION OF PARTICIPATORY RURAL APPRAISAL (PRA)
The PRA is effective method for analyzing the needs assessment of energy in rural community. When the energy policy such as increasing energy access program for poor community will be implemented, the market or needs evaluation should be conducted in order to observe in which service are actually required from the various energy technologies. Many energy policy and programmes have failed or not worked well because of the policy or programme was supplied to rural community without an assessment of actual energy requirements having been made. In such cases, the energy programme or technology do not supply the energy services/needs that the villages or rural communities actually required. This approach often means that the technology is not economically viable as it is underutilized or it is so unreliable that the communities stop using the proposed programme and technology and return to their traditional energy sources. In order to fulfill actual energy needs successfully, the PRA approach to provision of the energy options for rural communities in selected villages must emphasize to provide the reliable analysis and assessment.
1. The objective of PRA
In order to conduct assessment of the energy needs in the community at selected villages, the study approach of Participatory rural appraisal (PRA) was used. The PRA approach aims to incorporate the knowledge and opinions of rural people in the planning and management of energy needs and programmes in the community. Participation is one of the key principles of community development particularly in energy policy for poor-community in rural that is seen as an essential part of human growth and often leads to the development of self-confidence, pride, initiative, creativity, responsibility, and cooperation. Without such development within the people themselves, all efforts to alleviate their poverty will be immensely more difficult, if not impossible.
2. Key view of PRA
o Participation. Local people's input into PRA activities is essential to its value as a research and planning method and as a means for diffusing the participatory approach to development.
o Teamwork. To the extent that the validity of PRA data relies on informal interaction and brainstorming among those involved, it is best done by a team that includes local people with perspective and knowledge of the area's conditions, traditions, and social structure and
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either nationals or expatriates with a complementary mix of disciplinary backgrounds and experience. A well balanced team will represent the diversity of socioeconomic, cultural, gender, and generational perspectives.
o Flexibility. PRA does not provide blueprints for its practitioners. The combination of techniques that is appropriate in a particular development context will be determined by such variables as the size and skill mix of the PRA team, the time and resources available, and the topic and location of the work.
o Optimal ignorance. To be efficient in terms of both time and money, PRA work intends to gather just enough information to make the necessary recommendations and decisions.
o Triangulation. PRA works with qualitative data. To ensure that information is valid and reliable, PRA teams follow that at least two sources techniques must be used to investigate the same topics.
3. PRA Tools and Participatory Method of Data Collection
PRA is an exercise in communication and transfer of knowledge. Regardless of whether it is carried out as part of project identification or appraisal or as part of country economic and sector work, the learning-by-doing and teamwork spirit of PRA requires transparent procedures. For that reason, a series of open meetings (an initial open meeting, final meeting, and follow up meeting) generally frame the sequence of PRA activities. Participatory data collection, or research, is generally associated with qualitative methods of information gathering. Qualitative methods in comparison to quantitative ones tend to be more concerned with words than numbers. Qualitative methods are therefore based on data collection and analysis which focus on interpreting the meaning of social phenomena based on the views of the participants of a particular social reality.
Participatory approaches as PRA tools have a variety of data collection methods: (a) participatory listening and observation; (b) visual tools such as maps, daily activity diagrams, institutional diagrams and Venn diagrams, flow diagrams and livelihood analysis; (c) semi-structured interviews; and (d) focus group discussions. Among the participatory methods of evaluation, semi-structured interviews and focus groups are the most often used instruments for gathering the views of participants on certain topics and issues.
Qualitative PRA tools of semi-structured interview and focus group discussion (FDG) technique were selected by CAREPI technical team for Yogyakarta and Central Java Region in order to analyze the energy need assessment of rural community in selected villages. While quantitative questionnaires are structured in the variety of answers that a respondent chooses from, qualitative surveys and focus groups allow for more nuanced, semi-structured and open-ended responses. The objective of both techniques is to capture values, attitudes and preferences of participants to permeate the ‘how’ and the ‘why’ underlying a phenomenon of energy needs and services. Brief explanation related to the semi-structured interview and focus group discussions as follow:
1) Semi-structured interview
“Semi-structured interviews – conversations based on a set of guideline questions – are a key technique in participatory research, and a powerful way of learning about the views of older people” (reference!). Although all guideline questions will be asked during an interview – albeit with the possibility of varying order – new questions may arise during each interview. Therefore, the interview process is flexible
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compared to the rigidly structured interviews that we will turn to in the next section. This kind of flexibility will allow the interviewee to describe events, observations and issues in very personal terms and he/she will thus be less restricted to respond to questions in his/her own words. The set of questions however, will ensure comparability of data when the interviews are analyzed.
The guideline questions of the interview should be organized according to topical areas of inquiry that should succeed each other in a logical fashion. The language used should be comprehensible and jargon free. It is obvious that the interviewer has to be able to speak the language of the community in which he/she will conduct semi-structured interviews.
An ability to (a) ask short, simple and easy questions, to (b) listen attentively, to (c) steer the interview sensitively in the desired direction and to (d) remember what was said earlier and interpret correctly respondent’s statements during the interview are of paramount importance for the interviewer. At the outset of an interview, it is important to select appropriate participants, to explain why the researcher(s) conduct this interview, to record the interviewee’s name, age, gender and, importantly, whether the individual belongs to certain community institutions, how large the residential household is and how the interviewee locates him/herself within the community. Being outfitted with good quality recording equipment and making sure that the interview location is quiet and private are practical issues that are important for successful interviewing.
2) Focus group discussions (FGD)
Focus group discussions are “a research strategy which involves intensive discussion and interviewing of small groups of people, on a given ‘focus’ or issue, usually on a number of occasions over a period of time” (reference!). The difference between individual semi-structured interviews and focus group discussions is that the latter gives an opportunity to follow the group dynamic that evolves during the discussion. How interviewees react to each other’s responses and make up their opinion, often as a reaction to what other participants have expressed is of core interest during a focus group discussion. Since participants may argue about certain aspects of an issue that is being discussed during a focus group, the reactions expressed and opinions voiced may be more realistic compared to an individual interview. In addition, views of participants can be challenged by others more profoundly than in a semi-structured interview. Thus, focus group discussions ideally complement semi-structured individual interviews.
The moderator who facilitates the focus group should try to be not too intrusive and should rely on a rather unstructured setting for the discussions to extract the opinions, views and perspectives of the participants. He/she should have a rather small number of guiding questions to stir the discussion and should intervene minimally. Only when the discussion veers clearly off track or when there are unproductive silences, should the moderator get involved. The moderator should record the discussions on audio equipment and make notes on the non-verbal behavior of the participants. Naturally, the main interest would be on the range of opinions expressed, who are the opinion leaders and how.
4. Organizing PRA
A typical PRA activity involves a team of people working for two to three weeks on workshop discussions, analyses, and fieldwork. Several organizational aspects should be considered:
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• Logistical arrangements should consider nearby accommodations, arrangements for fieldwork days, organization for community meetings during the PRA, and material supplies such as demonstration tools, presentation materials and survey forms.
• Training of team members may be required, particularly if the PRA has the second objective of training in addition to data collection.
• PRA results are influenced by the length of time allowed to conduct the exercise, scheduling and assignment of report writing, and critical analysis of all data, conclusions, and recommendations.
• A PRA covering relatively few topics in a small area (perhaps two to four communities) should take between ten days and four weeks, but a PRA with a wider scope over a larger area can take several months. Allow five days for an introductory workshop if training is involved.
3.2 DESIGN AND IMPLEMENTATION OF PARTICIPATORY RURAL APPRAISAL (PRA) ON ENERGY NEEDS ASSESSMENT
1. Actors of PRA Works on Energy Needs Assessment
Some actors contributed the success of PRA activities. In this activity, needs assessment of energy programme, participation of rural community, technical team, regional office of energy (Dinas), district and rural government (perangkat kecamatan dan desa) were key-actors of PRA activities. The description of actors can be categorized in several functions as follow:
o Participation. Local people's input into PRA activities is essential to its value as a research and planning method and as a means for diffusing the participatory approach to development. The participants were attended in the PRA activities as follow:
community groups (household): kelompok masyarakat (rumah tangga) local entrepreneur : kelompok pelaku ekonomi (UKM) village/rural and sub-district governments : Pemerintah Desa dan Kecamatan mining and energy regional office of Gunungkidul District: Dinas Pertambangan
dan Energi Kab.Gunungkidul, community stakeholders : tokoh masyarakat, BPD, Badan Perwakilan Desa
o Teamwork and Facilitator. They consist of technical team of CAREPI. The teamwork has
responsibility to prepare, design and organize the PRA activities. They also provided the validity of PRA data relies on informal interaction and brainstorming among those involved. In this works, the teamwork involved regional officer of Dinas and local people with perspective and knowledge of the area's conditions, traditions, and social structure.
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During the PRA activities, i.e. FGD, the teamwork also provided the moderator and facilitator for guide the group discussion within rural community.
2. Design and Implementation of PRA Works on Energy Needs Assessment
In order to capture the specific social reality of energy needs assessment in selected villages/locations, a comprehensive research designs based on a combination of quantitative and qualitative methods was constructed. Data collected by quantitative research methods is rarely sufficient to provide a full explanation in such issues i.e. the observable social and economical issues in selected villages. Integrating quantitative analysis with qualitative methods is important to provide policy makers with a comprehensive portrait of the socio-economic situation of various social groups. Such an integrative approach would also be of use in reviewing and appraising the energy needs assessment. Figure 3.1 shows the frameworks and methodology of quantitative and qualitative research method combination used in the energy needs assessment. Table 3.1 presents the time-frame in detail of whole activities, i.e. preparation stage, PRA stages and final phase of programme conducted in the work programme of energy need assessment.
Figure 3.1: Frameworks of Energy Needs Assessment using PRA Approach
Table 3.1: Time-Frame and Activities in Frameworks of Energy Needs Assessment
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2008 2009
3 4 5 6 7 8 9 10 11 12 1 2 3
Stage 1: An overview of existing data/study/research/policy in relationship with pro-poor Local Economic Development (LED)
1. Visit Dinas and BPS 2. Decide the selected location of village(s)
Stage 2: Survey on Participatory Rural Appraisal (PRA) for Initial Data Collection
1. Design of activities and discussions 2. Discussion with stakeholders 3. Conduct surveys to household and the
meeting with involved communities 4. Visit to household and small business
which has used the renewable energy sources in selected village(s)
5. Design of PRA
Table 3.1: Continued
2008 2009
3 4 5 6 7 8 9 10 11 12 1 2 3
Stage 3: 1st Workshops and Participatory Rural Appraisal (PRA)
1. 1st Workshops for formulating energy policies: Community, Stakeholder, Government , Small Industrial Business
2. Conduct Semi-structured interview and Focus Group Discussion
W
• Analysis of PRA results • Conduct the dissemination of PRA
results with stakeholders • Prepare the materials for 2nd workshop
and discussion
Stage 4: 2nd Workshop and Focus Group Discussion for energy policies with regional government and stakeholders
W
• Prepare the materials for energy policy and programme for selected issues and technology
• Communication with community for gathering response and sharing the information regarding to proposed energy policy and programme
• Conduct the dissemination of proposed
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energy policy and programme with stakeholders
Final Phase of WP2:
1. Dissemination and presentation of final proposed programme in technical meeting
2. Compilation of results and discussion 3. Writing the final report
Table 3.1: Continued
Activities Time Remarks
Preparation of WP2 and PRA material for implementing on selected sites.
14 th July – PRA Material - WP2 Review (11th July) - Selected Sites (12th July)
Site Visit (by call)
Jogja: Kec.Karangmojo-Gunung Kidul, Jateng: Kec.Sukawera-Banyumas
16 July – 1 August Survey and PRA for Yogya and Central Java
- Visit selected sites - Stakeholders Meeting - Preliminary Data on Sosio-
Economic
1st Workshop:
a. Evaluation PRA b. Energy Need Assessment c. Formulation of Energy
24 July – Jogja (21 August)
31 July – Central Java
(16 August)
- Stakeholders Meeting - PRA Works & Evaluation - Assessment & Energy
Formulation
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Report of Workshop 25 August Report for CAREPI
Evaluation and Preparation on Workshop (Energy Policy)
August – October 2008 Material of Energy Policy
2nd Workshop October-November 2008 (PIC: Board and Local Goverment, REF)
Workshop on “Energy Policy” on Poor Community
Figure 3.1 and Table 3.1 show the stages and their activities of PRA method used in this work programme which consist of:
1. Stage 1: An overview of existing data/study/research/policy in relationship with pro-poor Local Economic Development (LED).
This stage is a pre-survey which was conducted in order to gather information for choosing some alternative locations for needs assessment work programme. The intensive discussions with regional energy office of Dinas Pertambangan Kabupaten Gunungkidul and BPS (Biro Pusat Statistik, Statistical Centre Bureau) of Kabupaten Gunungkidul were carried out. The outcome of this discussion is to give the global description regarding to view of region, economical aspect and current energy policies/programmes which have been implemented in the region/kabupaten. The information of social and economical quantitative data used in the energy needs assessment analysis was also taken from BPS.
After the location of Kecamatan Karangmojo was selected from other alternative locations, the depth-survey was conducted in order to get more complete socio-economic data, i.e. demography (population, gender, age, etc.), category of income (households) which was referred to BPS categories for poor community, topography of site (geographical view) – physical condition of lands, i.e. hilly, valley, flat, coastal, etc., income sources (BPS) and environments and Energy potentials.
2. Stage 2: Survey on Participatory Rural Appraisal (PRA) for Initial Data Collection
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In this stage, a survey of short interview for initial data collection of rural community was conducted in selected villages in Kecamatan Karangmojo, Kabupaten Gunungkidul. This survey is part of PRA tools. The interview was conducted in flexible form based on a set of guideline issues. This flexibility allowed the interviewee to describe selected issues in detail and could also generate the new questions (outside of guideline) on unconsidered issues.
The survey was employed by visiting the local stakeholder, regional office (Dinas) of energy and the local entrepreneur for gathering the information related to the real situation of cultural and social condition of community. This information from this survey is important matter be undertaken at the initial stages of the evaluation process and they often provide the basis for the design of in-depth questionnaires for semi-structured interviews and the conduct of focus groups in Stage 3. The information were collected during the survey (semi-structured interview) based on the following issues for set of guideline questions.
• Average daily or monthly income of rural communities in Kecamatan Karangmojo, • Form of energy which is currently used for domestic activities, community services and
local entrepreneur in Kecamatan Karangmojo, • Renewable energy potentials and sources are available locally in Kecamatan Karangmojo, • The lifestyle, community social characteristics and cultural background in Kecamatan
Karangmojo (in order to implement the PRA activities successfully),
3. Stage 3: 1st Workshops and PRA Works for Energy Needs Assessment and Formulating the Local Energy Policy
Three main activities were conducted in this stage. A half-day workshop was comprehensively performed together with semi-structured interview and focus group discussion in one-day. Semi-structured interview and focus group discussion are methods of qualitative participatory research method which was used in the PRA approach for energy needs assessment. The main issues delivered in these activities was (1) current energy consumption, (2) energy related needs and problems; and (3) energy priorities in rural community of Kecamatan Karangmojo. Based on these issues, some short-presentations for the workshop were written and a set of guideline questions were designed for the semi-structured interview activities. Thus, FDG materials were also designed for group discussion in the programme. Table 3.2 and Table 3.3 show the materials which were presented in the joined half-day workshop, semi-structured interview and FGD.
Table 3.2: Activities in Joined Half-Day Workshop, Semi-Structured Interview and FGD Energy for Needs Assessment
Activity Material Time
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Opening Speech Introduction: the aim of CAREPI project and objectives of the PRA and workshop
15 minutes
Presentation of Material 1
energy issues; types of energy, different energy options, energy costs
20 minutes
Presentation of Material 2
assessment of current energy sources: what form of energy is currently used for domestic activities, community services and local entrepreneurs
30 minutes
Semi-Structured Interview
household and local entrepreneurs
100 minutes
Focus Group Discussion
discussion and developing the list of energy priorities in households, local entrepreneurs and village services (public facilities)
45 minutes
Focus Group Discussion
energy-related business opportunities in the village 15 minutes
Focus Group Discussion
possible interventions that address the identified energy priorities: the community and local government to meet the high priority energy needs identified during the workshop
20 minutes
To ensure the appropriate information that used for energy needs assessment was captured from households (community) and local entrepreneurs in Kecamatan Karangmojo, a set of guidelines questions and topics for group discussion should be designed in the frame of general objectives as follow:
• HOUSEHOLD 1. To get a better insight in current energy related problems. 2. To calculate the energy need and its consumption (cost) for energy. 3. To evaluate the energy priorities for households. 4. To formulate the available energy potentials surrounding their village(s).
• LOCAL ENTREPRENEURS 1. To get a better insight in current energy related problems. 2. To calculate the energy need and its consumption (cost) for energy. 3. To formulate the energy potentials surrounding their village(s). 4. To evaluate the priority of energy use in ranking according to the urgency of a problem
for local entrepreneurs. 5. To identify possible economic activities (development) that can be operated if the new
energy have been supplied to the sites.
Table 3.3 also presents the activities were carried out and the brief explanation of materials were presented during the workshop and the PRA activities.
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Table 3.3: PRA Activities and Detail Materials in Joined Half-Day Workshop, Semi-Structured Interview and FGD Energy for Needs Assessment
Activity Materials and Activities
Opening Speech Material: It is important to emphasize in the introduction that CAREPI is committed to follow up on the outcome of the workshop. This means that the CAREPI team has assisted the community/regional government to the extent possible in implementing some of the options/recommendations identified during the workshop. This can be done through the Regional Energy Forum but the team also envisaged followed-visit to the community and/or the regional government in second workshop/FGD in order to present and discuss the results and to initiate the process that should eventually lead to improved supply of energy services to poor communities.
Presentation of Material 1
Material: A short presentation with the aim to raise the general awareness on energy issues among the participants was given. The presentation consisted of an overview of the energy options available for the various services such as cooking, water heating and communication. It also informed the participants about the national/regional government energy policies specifically aimed at communities which do not connected to the grid. A short view regarding to environmental and health aspects were also delivered.
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Presentation of Material 2
Material: This section aimed to give the introduction regarding to the approach for assessment of the current energy use and the past development. In order to allow all participants to contribute to the discussion, the participants were separated into number of smaller groups after presentation session.
Semi-Structured Interview and Focus Group Discussion
Activity: Participants from households were divided into several small groups with a facilitator who was prepared by teamwork. Facilitator moderated the discussion forum within a group and guided for filling out the questions form which was distributed to the participants. Whereas local entrepreneurs have been groupped separately. All data collected from participants were directly formulated by team in order to support the materials on followed workshop/discussion.
Table 3.3: Continue
Activity Materials and Activities
Focus Group Discussion
Activity: Within same groups from previous session, this FGD aimed to identify the main current energy problems in rural community of both categories, i.e. households and local entrepreneurs. In discussion, participants guided to rank the urgency of energy problem and priorities which were needed by community.
For example, the household’s participants write the energy priority that used in household and rank the daily energy services:
Priority 1: affordable and reliable supply of energy
Priority 2: cooking using LPG
Priority 3: computer access electricity
Priority 4: transportation petrol, diesel
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Priority 5: boiling water wood, gas, kerosene
Priority 6: lighting & cooling for clinic electricity, kerosene
Focus Group Discussion
Activity: Within same groups from previous session, this FGD session was destined to identify possible economic activities that could be undertaken by the community if sufficient and adequate energy was supplied to the village.
For example, production activities for generating income after improving the energy access in community:
▪ shops, tailoring, milling ▪ possible vegetable garden making use of water pumping system from
renewable energy facility ▪ battery charging station for lead acid batteries ▪ fertilizer production
Focus Group Discussion
Activity: Within same groups from previous session, this last FGD was meant to discuss with the participants possible measures that can be taken by the community or local/regional government to meet the high priority energy needs identified during the workshop.
The presentation materials and survey form are attached in Appendix ??? of this report.
4. Stage 4: 2nd Workshop and FGD for Energy Policy and Programme with Regional Government/Stakeholders
In the second workshop, the short workshop and focus group discussion was conducted with stakeholders and regional office (Dinas) in order to formulate and discuss the alternative energy policy and programme for Kecamatan Karangmojo. Some alternative energy programmes were proposed based on the PRA results from previous stages. The main issues delivered in these activities were (1) Energy priorities and policy for community and business opportunities in the village: summary from the PRA and 1st workshop; (2) assessment on other potential energy sources; (3) formulation on regional energy policy on selected community and local entrepreneur in Karangmojo.
Results from this workshop were used as main input for conducting the detail analysis on proposed energy programme and policy. During analysis, progresses of analysis on proposed energy programme have been communicated to regional offices, stakeholders and community.
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ENERGY SITUATION AND POTENTIAL IN
KECAMATAN KARANGMOJO: A SUMMARY FROM PRA APPROACH
4.1 Current Energy Situation and Consumption
The energy situation and potential of Kecamatan Karangmojo presented in this section is a result of focus group discussion (FGD) and semi-structured interview from PRA analysis (discussed in previous chapter). Table 4.1 presents the type of energy which is used in community. Cooking and lighting are the principal energy services needed in the households activities and constitutes approximately 85% and 15% respectively of the total energy consumption in households. Firewood and agricultural residues are still dominated as the principal energy source for cooking. An interesting observation is that the use of traditional fuels, such as firewood and agricultural residue, is prevalent to a greater or lesser extent in almost all households (is about 80 % of total households in Kecamatan Karangmojo), irrespective of their income level. Even among the higher income group. In most cases, this is in combination with other fuels and indicates the inclination of the households to make use of this low cost fuel during the harvest season when it is available in plenty. Other related issue and phenomena from this situation is
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that the government conversion program of kerosene to LPG for cooking has not been effectively implemented in Kecamatan Karangmojo.
Table 4.1: Type of Energy Used in Kecamatan Karangmojo
Type of Energy Supply No Activities Electricity Fuels Firewoods Electricity Fuels Firewoods
1 Cooking - √ √ - Buy Buy and Collect
2 Lighting √ √ - PLN Buy -
3 Production (Local Entrepeneur) - √ √ - Buy Buy and
Collect 4 Ironing √ - - PLN - - 5 Transportation - √ - - Buy -
6 Water Pump for Irrigation - √ - - Buy -
Source : FGD In Depth Interview, PUSPER UMY, Analyzed
Number of households connected to the utility grid (PLN) is approximately 8,722 households (about 60.84 %) and mainly used for lighting (Table 4.2). The rest of households uses kerosene lamp (mostly compressed lamps, but some use wick lamp) for lighting. Major households connected to PLN are registered as a customer class of R1.
Table 4.2: Total Household Connected to PLN in Kecamatan Karangmojo (2006)
No Village (Desa) Total
Household
Total Household connected to PLN
Electrification Ratio
( % )
1 Bendungan 615 318 51.7
2 Bejirejo 3.899 2.377 60.96
3 Wiladeg 1.262 887 70.28
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4 Kelor 811 449 55.36
5 Ngipak 944 637 67.48
6 Karangmojo 2.344 1.380 58.87
7 Gedangrejo 1.602 1.010 63.04
8 Ngawis 1.095 700 63.93
9 Jatiayu 1.797 1.035 57.60
Total 14,336 8,722 60,84
Source : Kecamatan Karangmojo Dalam Angka, 2006
Description of energy consumption gathered from in-depth semi-structured interview in Karangmojo community is shown in Table 4.3. The consumption rate of energy listed in Table 4.3 is average amount of energy. There are five types of energy services that used by community for their daily activities. Petrol fuel is used by community for transportation. Transportation mode of motorcycle is a common transport which is usually available in each household. Kerosene, as mentioned before, is used for cooking and lighting.
Table 4.3: Energy Consumption in Karangmojo community
No Jenis Energi Consumption/
month Price Unit (IDR/Rp)
1 Petrol 60 lt/ household Rp. 6.000/lt
2 Kerosene 10 lt/ household Rp. 3.000/lt
3 Firewoods 6 string/ household Rp.12.500/ string
4 Electricity Rp. 50.000/household Rp. 600/kwh
5 Diesel (for irrigation) 8 lt/h/farmer group Rp. 5.000/lt
Source : FGD In Depth Interview, PUSPER UMY, Analyzed
Diesel fuel is usually used for operating the water pump generator for irrigation system of rice farming. The cost of diesel consumption per month can reach to 12 liters per day or the calculated cost is Rp. (IDR) 60,000.00 per day. Thus, the cost per month can be calculated as about Rp. (IDR) 1,800,000.00.
4.2 Energy Problems The summary of energy problems written in this section is a result of focus group discussion for gathering information in detail for real energy problems which is faced by the community in Karangmojo. Starting from the government policy for reducing the subsidy on fuels, it has given the significant social and economical impacts to the community in Kecamatan Karangmojo.
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Increasing energy price have directly burdened to the community. The energy price increment has also effected to increasing the goods for household. Thus, household must decrease the spending for energy sector i.e. household member decreases the activities which uses the transportation, decreases the use of kerosene for cooking and changes it with firewood and decreases the lighting in household. For local entrepreneurs who are available in community such as industry of “tahu and tempe”, the energy price increment causes incremental cost of the production. Thus, they decrease the production side to reduce the incremental cost. Direct effect for this situation is the decreasing of the gross income.
This increment also affects to the farmer group (kelompok petani). This condition will influence in the income of the farmer and the Gunungkidul economy performance in the agricultural sector. The agricultural sector in Kecamatan Karangmojo (27 % from total area) has used the simple technology of irrigation system. Water is pumped from underground channel using the hydraulic pump system operated by a generator. However, increasing diesel price has caused the operational cost of water pump increases in double. The incremental operational cost cannot be covered by the income from agricultural/rice harvest. Some farmer groups cannot operate the water pump or they decrease the water supply to the farming.
Figure 4.1: Diesel waster pump for irrigation system used in Karangmojo
Therefore, renewable energy development in conjunction with the integrated economic development at Kecamatan Karangmojo is needed to assist the energy access in the community and then can directly impact to the economical improvement. Some renewable energy potentials have been identified in the survey and FGD activities which can be developed as a solution for energy source alternative in Karangmojo. The description of those energy potential is presented in the next section.
4.3 Renewable Energy Potentials Several renewable energi potentials in Kecamatan Karangmojo were identified from the result of the site visit, interview and FGD as shown in Table 4.4.
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Table 4.4: Renewable Energy Potential in Kecamatan Karangmojo
No Type of Energy Source Potential Energy
1 Wind --- 2.5 kw
2 Solar photovoltaic --- 3 kwh/m2/day
3 Bioethanol (Cassava) Cassava plantation 48,007.67 kwt
4 Biomass (sampah hutan) Agricultural/forest waste/residues 764.17 ha
5 Biogas Livestock 8,199 cows
6 Biodiesel ”Jarak” or Jatropha (physic nuts) 4,282.2 ha
Source : FGD In Depth Interview, PUSPER UMY, Analyzed Note: the number at Table 4.4 does not present as the energy priority, the amount of energy source or the energy rank.
The potential of wind in Karangmojo, Gunungkidul is not really high. The high speed of wind are found in the coastal area. The further investigation concerning to the wind speed and reliability and availability of the wind events should be conducted for this energy type. Solar or PV energy has high potential in Karangmojo because the little seasonal variation in isolation level even during the rainy season. Solar energy can be hardnessed economically through the year. Some application such as PV water pump system, solar home system and remote household from the grid are potentially implemented. However, the high capital cost the PV installation, components supply and maintenance aspect should be considered. Other renewable energy source is biofuel from Cassava and Jatropha plantation. Cassava is one of potential plants in Gunungkidul Regency. Cassava crops are usually cultivated to supply the population’s own needs. Releasable surpluses such as cassava are high and they are usually distributed in Indonesia or exported to overseases. However, environmental issues considering using bioethanol from Cassava, i.e. land degradation and food supply should be studied more detail. Jathropa plantation is also potential in Kecamatan Karangmojo. Referring to area of the dried-land and the not-farming land is about 4,282.2 ha, those lands can be cultivated with Jathropa for biodiesel production. Due to the limited knowledge regarding to Jathropa plantation, the building capacity on Jathropha cultivation and corp method to the community is needed.
Livestock production concentrates on cattle cows, buffaloes, goats and sheep. Cows and buffaloes are used to work the fields, but rarely marketed. With the amount of cows in Karangmojo is about 8,199 cows, the biogas energy is promised energy with large potential source which can be used.
4.4 Stakeholders Analysis from FGD on Energy Development in Karangmojo As mentioned before, the energy programmes can be implemented well if the rural community can participate in the programme for deciding the needs of energy services. Some result discussions related to
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“hopes” or expectations on energy services which will be planned and implemented between stakeholders can be written down. Stakeholders inhere consists of community and local entrepreneur (Karangmojo) representative, local administrator (local government), regional office of Dinas and technical team/university. Identification of these expectations is an important aspect to understand and set up the role and participation of each stakeholder which is involved in the energy development programme. The result of stakeholder analysis is listed in Table 4.5 and 4.6.
The central point of expectations from the stakeholders is to improve the prosperity and social welfare in the community through the improvement of renewable energy access which is developed by synergy and sustainable. Thus, the developed energy programmes should have a long term vision and improve directly or non-directly the economic condition of the community. It is similar with the energy policy from the regional government of Yogyakarta which the energy programme should be Pro-Poor; Pro-Growth and Pro-Job. It means that the benefit of proposed energy programme can reach the community in terms of improving the quality of socioeconomic.
Table 4.5: Expectation from Stakeholder Analysis for Energy Needs in Kecamatan Karangmojo
No STAKEHOLDERS EXPECTATION
1 Community and Local Entrepreneur
1. Improving the knowledge and skill in the self-service renewable energy supply
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2. Improving the household/industry income and reducing the expenses on energy due to have an alternative energy access which is cheaper and environmental friendly
2 Administration Officer or Local Government (Pemerintah Desa/Kecamatan)
1. Developing the alternative energy for poor community and local entrepreneur
2. Improving the prosperity and social welfare in the community through the energy access
3. Creating the job opportunities for community for improving the life quality
4. Improving the GDP growth
5. Optimizing the energy potentials within Kecamatan Karangmojo
6. Providing and controlling the sustainable energy supply and program for community and local entrepreneur
3 Mining and Energy Office, Gunungkidul Regency
1. Using the participatory method/approach for finding the community participation and involvement for needs assessment and gathering community response from the available energy potentials in the community
2. Improving and sharing the knowledge of self-service energy villages into the community
3. Improving the self-service energy household
4 University/technical team 1. Developing communication with community and local stakeholders for needs energy assessment and planning the energy program
2. Contributing in the community service for improving the energy access in the poor community
3. Developing the simultaneous energy and economic programme for community
Source : FGD In Depth Interview, PUSPER UMY, Analyzed
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PROPOSED ENERGY PROGRAMMES IN
KECAMATAN KARANGMOJO
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5.1 POTENTIAL PROPOSED ENERGY PROGRAMMES
Based on the available energy potentials and the needs assessment from the PRA results, several energy service programmes were proposed. These potential energy programmes were also planned and designed in relationship with important issues of (1) the sustainability of the programmes through cultural and social approach, (2) the optimization of the available renewable energy sources, and (3) the improvement of the better quality life through the energy programme. The potential proposed energy programmes in Kecamatan Karangmojo are described as follows:
1. Biogas Energy Package (BGEP) for cooking purposes. This program was proposed due to this energy service is high portion of energy used in Karangmojo community. The packet consists of four sub-programs which are: a. Development a pilot installation for complete biogas energy infrastructure which is efficient and
low-cost construction based on the capacity of 2-4 cows for household level. b. Community assistance in terms of cultural approach for transferring the knowledge and
implementing the biogas energy program. The program is also followed by the extension for the cow husbandry.
c. Assistance on the potential cooperation (koperasi), local entrepreneur or local financial unit which is potential and interest in this program.
d. Assistance on fertilizer process from the biogas residue. The fertilizer can be used by former group for farming or can be sold as the additional income for household.
2. Biogas Energy Package (BGEP) for local entrepreneur. The packet is to develop a pilot installation for complete biogas energy infrastructure which is efficient and low-cost construction based on the capacity of 5-10 cows for local entrepreneur/small industry level.
3. Biodiesel Energy Package (BDEP) for household and irrigation system. The packet consists of three sub-programs which are: a. Development a pilot installation of complete simple-biodiesel process for oil production in order to
replace or mix-biodiesel and diesel fuel for water pump generator. For household, the oil from Jatropha can be used for kerosene stove or modified kerosene stove.
b. Community assistance in terms of cultural approach for transferring the knowledge and implementing the Jathropa cultivation.
c. Assistance on the potential cooperation (koperasi), local entrepreneur or local financial unit which is potential and interest in this program.
4. Biomass Energy Package (BMEP) from rice husk. The packet is to develop a pilot installation of biomass process for energy from the rice husk ash or other agricultural residues for local entrepreneurs.
These programme packages were then detailed in order to produce the efficient programme in terms of:
1. Design of installation for implementing the programme, 2. Economic analysis, 3. Community participations and financial scheme plan.
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5.2 TARGET GROUP
The proposed programmes were targeted for developing the renewable energy access to the target group of the household, local entrepreneur (small industry) and former groups in Kecamatan Karangmojo. These groups were chosen based on the ownership of livestock which its residue can be used for renewable energy of biomass. The residue from biogas process is also potential to be processed as fertilizer for plantation. These groups also have the willingness for receiving the renewable energy program in order to solve their needs of the energy services
5.3 BGEP (Biogass Energy Programme)
5.3.1 Background
Biogas is obtained by anaerobically digesting (in an air free environment) organic material to produce the combustible gas methane. Animal and municipal wastes are common feedstocks for anaerobic digestion. The digestion of animal waste yields several benefits, i.e. methane is produced and can be used as a fuel; the waste is reduced to slurry which has a high nutrient content which makes an ideal fertilizer (in some cases this fertilizer is the main product from the digester and the biogas is merely a by-product); and during the digestion process, bacteria in the manure are killed which is a great benefit to environmental health. In case of the proposed technology used in the Kecamatan Karangmojo, the proposed digester biogas was designed for producing the combustible gas methane from the animal waste of cattle livestock (cows), that his availability was abundant enough in this region.
5.3.2 Biogas Composition
Biogas consists of methane gas (CH4) and carbon dioxide (CO2), and small amount of hydrogen sulfida (H2S), ammonia (NH3), hydrogen (H2) and the very small content of nitrogen. Energy that produced from the biogas digester depends on the concentration of methane (CH4). The concentration of methane gas increases the energy increases and vice versa. The concentration can be increased through a treatment of several parameters, i.e. elimination of hydrogen sulphur, water content and carbon dioxide (CO2).
5.3.3 Biogas Reactor
The biogas reactor was chosen for this programme is the digester reactor fixed-dome (Figure 5.1) with the volume of 9 m3. This reactor consists of two main parts, (1) the fermentation digester for the biogas production, (2) the balancing digester (displacement tank) which is used for controlling and producing the organic fertilizer. The digesters were constructed at certain depth using the bricks. The digester structure requires good sealing in order to avoid the gas leakage. The proposed fixed dome digester is modified from
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the Chinese digester with the main digester is constructed in a dome shape which cannot be moved (fixed). The animal waste is fed into the digester via the inlet pipe and undergoes digestion in the chamber. The temperature of the process is quite critical which the bacteria operate most efficiently between approximately 30 – 40° C for producing the methane and corbon dioxide gas (typically in ratio 6:4). Digestion time ranges from a couple of weeks to couple of months depending to the feedstock and the digestion temperature. The residual slurry is removed in the outlet and can be processed for fertilizer. The main advantage of this type of digester is a low cost construction.
Figure 5.1: Fixed-dome Biogas Digester/Reactor
2,5m
2,1m 2,1m 0,4m
5.3.4 Construction Cost and Economic Analysis
The estimated cost for constructing the digester reactor fixed-dome with the volume of 9 m3 is listed in Table 5.1.
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Table 5.1: Estimated Construction Cost for Proposed Biogas Digester Volume 9 m3 for 1 Household
Economic analysis was conducted on the construction feasibility of the digester reactor fixed-dome. The results of the economic analysis are described as follows:
1).Benefit and Cost Analysis
No Material/Component Size Required Unit Price Amount (IDR)
1 Cement 40 kg per unit
48 per unit 41,000 1,968,000
2 Foundation Materials (Stone)
- 6 m3/unit 300,000 1,800,000
3 Sand - 13 m3/unit 400,000 800,000
4 Clay-Brick
(batu bata merah)
5:20:10 3,500 units 450 1,575,000
5 PVC-Pipe 8 inch 1 unit 400,000 400,000
6 PVC-Pipe 0.5 inch 30 m 12,000/4 m 96,000
7 PVC-Pipe 0.75 inch 1 unit 18,000 18,000
8 Addittive Material for Mix Concrete Design
(Ekosal)
- 3 kg 40,000 120,000
9 Workmanship 6 man 15 days 40,000/day 3,600,000
Total Construction Cost 10,377,000
Note : Economic life-time of biogas reactor is estimated 20-25 years
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Benefit and cost analysis (Table 5.2) was used for benefit and safe that can be received by households if they use the digester reactor. The economic analysis of digester is calculated for volume 9 m3 from two cows.
Table 5.2: Benefit and Cost Analysis for Proposed Biogas Digester
No Remark Volume Unit Price Safe per
Month Safe per Year
1 Safe from kerosene used
10 liter/month Rp. 7,000 Rp. 70,000 Rp. 840,000
2 Safe from Firewood
6 sting/month Rp. 12,500 Rp. 75,000 Rp. 900,000
3 Benefit/Safe from the use of Organic Fertilizer
20 kg/day Rp.500 Rp. 300,000 Rp. 3,600,000
Benefit for the use of biogas digester per year Rp. 5,340,000
Construction cost of giogas digester (Table 5.1) Rp. 10,377,000
Note : 1 cow can produce 15 kg animal waste per day. Every 12 kg of waste can be used for methane gas which converts with ½ liter of kerosene
2) Pay Back Period
This analysis is used for payback period from proposed biogas digester. The result is presented in Table 5.3.
Table 5.3: Pay Back Period for Proposed Digester Biogas
No Remaks Investment
1 Investment cost of proposed digester Rp. 10,377,000
2 Stove for cooking (1 unit) Rp. 600,000
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Total Investment Rp. 10,977,000
3 Saving in Year 1 Rp. 5,340,000
4 Rest from Investment of Year 1 Rp. 5,637,000
5 Saving in Year 2 Rp. 5,340,000
6 Rest from Investment of Year 1 Rp. 297,000
Payback Periode is 2 years + (Rp. 297.000/Rp.5.340.000 × 12 months)
= 2 years 17 days
5.3.5 Energy Conservation
1. Biogas is a type of energy which give small amount of carbon dioxide in the environment compared to the issue of fossile fuel and the issue of deforestation and land destruction/degradation,
2. Energy biogas can replace the fossil fuel for household energy service. The energy meets to environmental issue so it can contribute for reducing the effect of the global warming and other emissions,
3. Energy biogas has some equivalents for applications which is shown in Table 5.4.
4. The animal waste produced from the anaerobic digestion can minimise environmental effects and increase the benefit from the waste in the form of solid and liquid organic fertilizer.
Table 5.4: Some biogas equivalents (Kristoferson and Bokalders 1991)
Application 1m3 Biogas Equivalent
Lighting Equal to 60 – 100 watt bulb for six hours
Cooking Can cook three meals for a family of a five or six
Fuel replacement 0.7 kg of petrol
Shaft power Can run a one horsepower motor for two hours
Electricity generator Can generate 1.25 kilowatt hours of electricity
5.4 Biodiesel Energy Programme (BDEP)
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5 .4.1 Background
Jatropha and well known as Jarak (in Indonesia) is a genus of approximately 175 succulent plants, shrubs and trees (some are deciduous, like Jatropha curcas L.) from the family Euphorbiaceae. The name is derived from (Greek iatros = physician and trophe = nutrition), hence the common name physic nut. Jatropha is native to Central America and has become naturalized in many tropical and subtropical areas including Indonesia. Jatropha oil is vegetable oil produced from the seeds of the Jatropha curcas, a plant that can grow in marginal lands and common lands. Jatropha curcas grows almost anywhere, even on gravelly, sandy and saline soils. It can also thrive on the poorest stony soil and grow in the crevices of rocks.
Jatropha oil currently has been developed well in many countries such as India, Brazil, Africa and Myanmar for biodiesel fuel. When jatropha seeds are crushed, the resulting jatropha oil can be processed to produce a high-quality biodiesel that can be used in a standard diesel car, while the residue (press cake) can also be processed and used as biomass feedstock to power electricity plants or used as fertilizer (it contains nitrogen, phosphorous and potassium). The second proposed energy programme in Kecamatan Karangmojo is the use of Jatropha oil for energy services of water pump generator on farming and cooking for household. Main considerations for implementing this programme are (1) lessons learned from the successful of biodiesel program in India and Kecamatan Karangmojo has huge potential for Jatropha plantation as raw material for producing biodiesel due to many marginal lands exist in Gunungkidul regency, (2) Jatropha is not for food materials (3) Jatropha can be planted on dry/marginal lands, so it has a potential to change a dry land into a productive land. Jatropha is a valuable multi-purpose crop to alleviate soil degradation, desertification and deforestation, which can be used for bio-energy to replace petro-diesel, for soap production and climatic protection, and hence deserves specific attention. Jatropha can help to increase rural incomes, self-sustainability and alleviate poverty for women, elderly, children and men, tribal communities, small farmers in Kecamatan Karangmojo. It can as well help to increase income from plantations and agro-industries.
5.4.2 Composition of Jatropha Oil
Jatropha curcas tree (proposed in Kecamatan Karangmojo) which can easily be propagated by cutting is widely planted as a hedge to protect the field’s erosion, as it is not browsed by cattle. Jatropha curcas can grow well under such adverse climatic because of its low moisture demands, fertility requirements and tolerance to high temperatures (Kaushik et al. 2007). All parts of J.curcas plant have their own uses. Like many other Jatropha species, Jatropha curcas is a succulent tree that sheds its leaves during the dry season. It is well adaptor to arid and semi-arid conditions and often used for erosion control. The leaves are used in traditional medicine against coughs or as antiseptics after birth, and the branches are chewing sticks (Gübitz et al. 1999). The latex produced from the branches is useful for wound healing and others medical uses. Each fruit contains 2-3 oblong black seeds which can produce oil. The seed kernel oil contained 40- 60% (w/w) oil (Makkar et al. 1997). The seed oil extracted is found useful in medicinal and veterinary purposes, as insecticide, for soap production and as fuel substitute (Gübitz et al. 1999). Jatropha seeds contain 20 – 40 % vegetable oil.
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The composition of Jatropha curcas oil consists of main fatty acid such as palmitic acid (13%), stearic acid (2.53%), oleic acid (48.8%) and linoleic acid (34.6%) (Martínez-Herrera et al. 2006). Jatropha curcas oil contains high percentage of unsaturated fatty acid which is about 78-84% (Table 5.5). Jatropha oil can also be converted to epoxy fatty acids. The vegetable oil-based epoxy material is sustainable, renewable and biodegradable materials replacing petrochemical-based epoxy materials in some applications. This made the oils suitable for biodiesel production. However, the chemical compositions of the oil vary according to the climate and locality. Table 5.6 shows the physicochemical properties of the Jatropha curcas seed oil (south Asia countries) compared to the Nigerian Jatropha curcas seed oil.
Table 5.5: Fatty acid from Jatropha oil (Meyer et al. 2008)
Fatty Oil Content
Palmitic (C16/0) 14.2
Palmitoleic (C16/1) 1.4
Stearic (C18/0) 6.9
Oleic (C18/1) 43.1
Linoleic (C18/2) 34.4
Saturates 21.1
Unsaturated 78.9
Table 5.6: Physicochemical characteristics of Jatropha oil (Salimon & Abdullah 2008)
Fatty Oil South Asian Nigeria
Iodine value (mg/g) 135.85±1.44 105.20±0.70
Peroxide value 0.66±0.04 ---
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Acid value (mg KOH/g) 1.50±0.07 3.50±0.10
Free fatty acid as oleic acid (%) 1.03±0.10 1.76±0.10
Saponification value (mg/g) 208±0.47 198.85±1.40
Moisture oil (%) 0.02±0.01 ---
Viscosity 36.00 17 – 52
Refractive index at 28° C 1.469 1.468
Color Golden-yellow Light-yellow
Total lipid content (%) 60.45±1.44 47.25±1.34
5.4.3 Jatropha Oil Production
Based on the research conducted by ITB and PT Rekayasa Industri, Jatropha oil produces the environmentally bio-fuel and has higher cetane number compared to the fossil fuel of diesel which is available in Indonesia. From their calculation, 3 kg of Jatropha seeds can generate about 1 liter Jatropha oil with the quality similar to the diesel fuel. Jatropha oil has larger the oxygen content and less calories compared to diesel fuel. Both contents make the better combustion process of Jatropha oil. In order to produce Jatropha oil, after collection the fruits are transported in open bags to the processing site. Here they are dried (about two days) until all the fruits have opened. It has been reported that direct sun has a negative effect on seed viability and that seeds should be dried in the shade. When the seeds are dry they are separated from the fruits and cleaned. Jatropha seeds are then crushed, rolled and pressed with the simple roller equipment which is shown in Figure 5.2.
Figure 5.2: The proposed roller and presser equipment for Jatropha oil production and oil results from the roller.
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5.4.4 Jatropha Oil Stove for Household and Economical Analysis
1) Proposed Stove
Energy service of cooking in Kecamatan Karangmojo is major consumption on energy needs. A proposed jatropha oil stove is considered for household use in the programme (Figure 5.3). The use of proposed stove can be synergy with proposed use of Jatropha for replacing the kerosene on cooking and lighting purposes. A proposed stove is modified from the kerosene wick stove which is commonly used in households. Operational procedure of proposed stove is similar with the kerosene wick stove. However, the preheating time is needed and it takes longer than the wick stove. In addition, the maintenance of proposed stove should be taken consideration due to the carbon residues in Jatropha stove wicks is more than the kerosene stove. Proposed stove can be bought from several small industries which are available in the Yogyakarta region. The specification of proposed Jatropha wick stove is shown in Table 5.7.
Figure 5.3: The proposed stove for Jatropha oil
Table 5.7: Specification of Jatropha Stove
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No Remark Specification
1 Dimension 28 x 28 x 27 cm
2 Tank capacity 2 liter
3 Fire flame Blue with red
4 Fuel consumption 225 ml/hour
5 Water boiling 14 minutes/2 liter
2) Economical Analysis for Proposed Stove
Economical analysis is implemented to assess the feasibility of the Jatropha Oil programme for cooking in Karangmojo. Table 5.8 and Table 5.9 show the cost analysis for Jatropha oil production and stove use for cooking; and the benefit and saving analysis of this programme for a household. The benefit analysis is calculated by the assumption of the kerosene use for cooking in a household is about 1 liter per day.
Table 5.8: Cost Analysis for Jatropha Oil Programme of cooking energy service for Household in Karangmojo
No Remark Volume Price Unit Estimated
Cost
1 Roller/Presser Equipment for Jatropha Oil
1 unit Rp. 2,000,000 Rp. 2,000,000
2 Jatropha cultivation
- Land 0.2 ha - -
- Seed 0.4 kg Rp. 50,000 Rp. 20,000
3 Wick Stove 1 unit Rp. 200,000 Rp. 200,000
Investment Total/Cost Rp. 2,220,000
Note : 1 liter Jatropha oil needs 3 kg of Jatropha seeds. 1 ha land can produce 15 kg of seed per day with seeds for plantation of 2 kg. Land is used for the programme is a marginal land that does not cultivated by agricultural plants for food or commercial purposes.
Table 5.9: The economic benefit and safe analysis for a household
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No Remark Volume Price Unit Estimated Cost
(per year)
1 Kerosene Stove 1 unit Rp. 200,000 Rp. 200,000
2 Minyak Tanah 10 liter/month Rp. 7,000 Rp. 840,000
3 Firewood 6 string/month Rp. 12,500 Rp. 900,000
Cost for cooking using kerosene and firewood Rp. 1,940,000
Cost for cooking using Jatropha oil stove Rp. 2,220,000
Saving per household after Jatropha harvest Rp. (280,000)
Saving per household per year after Rp. 1,720,000
5.4.5 Jatropha Oil for Water Pump Generator (Economic Analysis)
Jatropha oil is able to be used for bio-fuel in the generator machine. It replaces the fossil fuel of diesel that usually be used on the electrical generator system. The proposed program is to replace the use of diesel on generator machine for water pumping of farming irrigation system. Due to potential of Jatropha oil and available lands for its plantation/cultivation in Kecamatan Karangmojo, the proposed programme can meet to the sustainable development issue. The proposed programme can significantly assist to the famer groups in increasing their farming income and meets to food secure issues. In this programme, the bio-fuel of Jatropha oil will not mix to the diesel fuel. Jatropha oil will replace totally for irrigation pumping purpose.
The aim of this economical analysis is to conduct the feasibility of the proposed programme before will be implemented to the farmer groups in Kecamatan Karangmojo. The aspect of benefit and saving analysis was considered in the economical analysis. Table 5.10 and 5.11 shows the economical analysis of this programme.
Table 5.10: Feasibility Analysis on Jatropha Oil for Water Pump System in Kecamatan Karangmojo (Analysis for 1 Farmer Group)
No Remark Volume Price Unit Estimated Cost
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(per year)
1 Generator (Diesel Fuel) 1 unit Rp. 1,000,000 Rp.1,000,000
2 The need of diesel fuel for irrigation (calculated for dry session on 8 months/year)
12 liter/day Rp. 6,000 Rp. 17,280,000
3 Generator (Jatropha Oil) 1 unit Rp. 1,500,000 Rp. 1,500,000
4 Jatropha cultivation: - Landuse for cultivation - Jatropha seeds - Estimated cultivation cost
2.4 ha
4.8 kg/year 2.4 ha/year
Rp.2,500,000
Rp. 50,000 Rp.1,400,000
Rp. 6,000,000
Rp. 240,000 Rp. 3,360,000
5 Crushing and Pressing Machine for Jatropha seed
1 unit Rp. 4,000,000 Rp. 4,000,000
Total cost per year for Diesel Generator (1 + 2) Rp. 17,280,000 Total cost per year for Diesel Generator (3 + 4 + 5) Rp. 13,600,000 Saving (first year) after Jatropha harvest and First Jatropha oil production Rp. 3,680,000 Saving per year after first year Rp. 7,680,000 Note : a. Capacity of Pressing machine, Input: 100 kg/day, Production capacity: 20% × 100 kg Jatropha seeds or 25
liter JO/day. Lifetime of machine is about 10 years b. The effective raining session in Kecamatan Karangmojo is estimated for 4 months. c. Jatropha cultivation is about 3 years for harvest and can be produced to be Jatropha oil (JO).
Based on the calculation, the saving that can be received by farmer groups for the use of Jatropha water pump generator which is estimated for first year after Jatropha oil production and the years after is about Rp. (IDR) 3.68 and 7.68 million, respectively. Therefore, the cash-flow analysis was also conducted for estimating the economical feasibility on investment scheme in this programme.
Table 5.11: Cash-flow Analysis on Jatropha Oil for Water Pump System in Kecamatan Karangmojo (Analysis for 1 Farmer Group)
Year Investment for JO Machine
Operational Cost
Cash in‐flow
Net Cash‐flow
1 0 9,600,000 0 -9,600,000 2 0 9,600,000 0 -9,600,000 3 0 9,600,000 0 -9,600,000 4 4,000,000 9,600,000 17,280,000 3,680,000 5 0 9,600,000 17,280,000 7,680,000 6 0 9,600,000 17,280,000 7,680,000 7 0 9,600,000 17,280,000 7,680,000 8 0 9,600,000 17,280,000 7,680,000 9 0 9,600,000 17,280,000 7,680,000
10 0 9,600,000 17,280,000 7,680,000 11 0 9,600,000 17,280,000 7,680,000
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12 0 9,600,000 17,280,000 7,680,000 13 0 9,600,000 17,280,000 7,680,000 14 0 9,600,000 17,280,000 7,680,000
Total 4,000,000 134,400,000 190,080,000 51,680,000
5.5. BIOMASS ENERGY PACKAGE (BMEP) FROM RICE HUSK.
5.5.1 Biomass Gasification of Rice Husk for Local Entrepreneurs
Biomass gasification of energy package programme using the rice husk (as known in Indonesian as “sekam padi”) is a last proposed programme in the energy needs assessment in Kecamatan Karangmojo. The idea of this program comes from the lesson learned from rice husk gasification project facility at Haurgeulis, West Java. Yet, the status of the project is for commercial purpose but the technology of gasification can be adapted to the community at Kecamatan Karangmojo. Gasification is the process by which rice husk materials (feedstock) are broken down using heat to produce a combustible gas, commonly known as producer gas. The biomass gasification plant consists of a simple reactor, similar to a simple stove into which the rice husk fuel is fed. The supply air to the fuel is however carefully to be controlled to allow only partial combustion of the fuel to take place. During this process the gasses are given off, which are captured and can be used as a gaseous fuel. Several combustible gases are given off – hydrogen, carbon monoxide and methane – as well as carbon dioxide and nitrogen.
The reactor type of fixed-bed reactor was proposed for this programme. This reactor type is suitable for small-scale producer gas system compared to other type of reactor (fluidized-bed). Another consideration for using this type of reactor is reasonably simple, cheap and can be manufactured locally. An example small-scale gasifier of fixed-bed reactor is shown in Figure 5.4.
Figure 5.4: Fixed-bed Reactor of Rice Husk Biomass Gasification
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Rice husk is a potential source widely located in Kecamatan Karangmojo. It is residue/waste from rice farming process which can be taken from rice milling (in Indonesian known as “penggilingan padi”). There are several local entrepreneurs of rice milling located in Kecamatan Karangmojo (Table 5.12). These rice millings have limited production of rice husk due to their service only provide for local famer groups. Average production of each rice milling is about 400 kg/day. Thus, the rice husk has proportion of 25 % of production. This is a potential source in terms of biomass feedstock for conducting the biomass gasification. Based on a research conducted by ITB 3 to 4 kg of rice husk can produce amount energy which is similar (conversion) with 1 liter of diesel fuel.
Table 5.12: Local Entrepreneurs of Rice Milling in Kecamatan Karangmojo
N0 Village Rice Milling
1 Bendungan 1
2 Bejirejo 5
3 Wiladeg 2
4 Kelor -
5 Ngipak 5
6 Karangmojo 4
7 Gedangrejo 3
8 Ngawis -
9 Jatiayu 2
Total 22
Gaseous fuel from biomass gasification can be used for operating a gas engine or diesel engine. The diesel engine should be modified in order to use the gaseous fuel for its operation. However, the diesel engine can still employ without any modification but it should use the double-fuel of gaseous and diesel fuel with the composition of 30 % diesel fuel and 70 % gaseous fuel. It means that the consumption of diesel fuel in rice milling can be reduced until 70 % (replaced by gaseous fuel).
5.5.2 Economical Analysis of Biomass Gasif ication of Rice Husk
The average capacity of rice milling in Kecamatan Karangmojo is 6 HP (house power) or similar with 5 kW. If the milling machine/engine is working for 8 hours per day, it needs about 13 liter of diesel fuel. An economical calculation of saving by reducing the diesel fuel in rice milling process and replacing by gaseous fuel from biomass gasification can be estimated as follows:
Composition = 70 % gaseous fuel : 30 % diesel fuel
Use of diesel fuel = 30 % × 13 liter = 4 liter
Saving in diesel fuel = 70 % × 13 liter × Rp. 4,500 (subsidy)
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= Rp. 40,500/day
= Rp. 14,580,000/year
The feasibility of this programme can be calculated using its Pay Back Period (PBP) for the total investment time needed. The simple calculation is described as follows:
Pay Back Period (PBP) = =
Pay Back Period (PBP) = 2 year 9 months
The investment of Rp. (IDR) 40 million is calculated based on the biomass gasification reactor and components which are needed for rice husk process to be gaseous fuel, i.e. gasifier, cyclone, wet scrubber and gas cooler.
5.6 Stakeholder Analysis For Implementing The Proposed Programme
5.6.1 Institutional Set-Up for Managing Energy Infrastructure
A stakeholder analysis in this work package is needed in order to identify the potential scheme that can be used for implementing the proposed programme in Kecamatan Karangmojo. The involved stakeholders are community, farmer groups, local administration office (pemerintah desa dan kecamatan), regional energy office of Gunungkidul Regency, academics (universities) and prospected financial units/boards. A result of stakeholder analysis is presented in Table 5.13. The analysis was gathered by in depth interview and focus group discussion which was conducted during the study.
Participatory approach through PRA to development are based on the idea that the rural community in Kecamatan Karangmojo who are the focus of the investigation, implementation or analysis know more about their energy needs and environments, and what they need to improve their quality of life than the professionals who are working with them. The professionals or universities are only acting as a facilitator in order to gain the information related to the energy needs and technical aspects that need to be planned and designed, i.e. choosing the appropriate technology and economical calculation as well. Based on
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stakeholder analysis, community, farmer groups and local entrepreneurs in this programme are positioned as owner of the proposed project. They will take responsibility for managing the proposed energy project. However, the assistantship scheme by local administration office (local government) and local universities should be running well in order to supervise and to mentor on the operation of the proposed energy programme. In this institutional set up, a small committee is set up which represents the community population. Representation on the committee is by virtue election, leadership status or role within the community. In practice, such committee often reflects the hierarchy of the community added with representative from all section (the community group who involves directly in the programme) of the population in order to be more sustainable. The committee should be involved in scheme planning and implementation, and in overseeing revenue collection, billing (if any), and operation and maintenance.
Beside to provide the assistantship and mentoring scheme to the community in Kecamatan Karangmojo, local university also has a responsibility to design the proposed technology that will be implemented in the programme. The university can conduct the pilot project of the proposed programme (together with Regional Mining and Energy Office/Dinas of Gunungkidul Regency or at the level of Yogyakarta province) at selected households, farmer groups or local entrepreneurs. It needs due to the community should be taken into the understanding of the benefit and saving for using the energy alternative programme. Based on this situation, it is hoped that the community can be self-reliant in using the renewable energy sources for their energy services and needs.
Table 5.13: Stakeholder Analysis for Intitutional Set Up and Financing Scheme of the Proposed Energy Programmes in Kecamatan Karangmojo
NO STAKEHOLDERS CONTRIBUTIONS
1 Community, farmer groups and local entrepreneurs
Owner and take responsibility for managing the installed energy infrastructure in Kecamatan Karangmojo
2 Local administration office/government
1. Provide an energy facilities and infrastructure 2. Budget allocation from Village Budget/Anggaran Dana
Desa (ADD) for development of energy alternative at each region.
3. Supervising the implementation of the proposed energy project.
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3 Regional Mining and Energy Office of Gunungkidul Regency
Continue and focused on programs in next fiscal period (APBD/APBN) related with energy alternative development in region includes infrastructure provision and capacity building.
4 Banking, Micro Finance Institution, Usaha Kecil and Menengah (UKM), Koperasi (Cooperation/Economic Enterprise)
1. Commitment to provide Kredit Usaha Rakyat (KUR) and other scheme of credits for farmers in building an energy infrastructure.
2. Capacity building for famer groups especially in finance management aspect.
3. Possible to be one of investors for energy infrastructure development.
5 University 1. Provide training and education facilities for capacity building in development of energy alternative.
2. Mentoring and assisting in operational of energy alternative.
3. Improving an applied research and development of energy alternative.
5.6.2 Financing Scheme for the Proposed Programmes
Many studies show that the key constraint to energy supply by the renewable energy for rural community is access to the initial capital needed to purchase the equipment or to build the infrastructures to harness the resource. This leads rural communities to choose energy options that are cheap on a day-to-day basis, but which offer a poor quality of energy supply and are expensive over the longer term. In addition, the current economical condition in community of Kecamatan Karangmojo, particularly for poor household show that they cannot finance the proposed energy programme (i.e. Biogas for Cooking) based on their income. Thus, financial way by other institutions/sources is need in order to implement the proposed programme to the community. Several alternative formal sources for financing the proposed programme are Banking, Micro Finance Institution, Usaha Kecil dan Menengah (UKM). There are three reasons to involve the UKM in this scheme (Berry, dkk, 2001). First, the performance of UKM shows the good achievement in order to produce the economic activities in the rural community. Second, UKM involves the investment and technology development for increasing its productivity. Third, UKM has flexibility in the economic activities compared to the larger units. In addition, Kuncoro (2000) reports that UKM in Indonesia plays the important role for reserving the local worker, increasing the economic units and supporting the household income. Other informal organization which has a potential unit for financing the programme is Koperasi (Cooperation). The cooperation can perform sustainable programme due to the cooperation is familiar unit in the community and local farmers for financing their needs in household and farming sector. However, the assistantship of both units (UKM and Cooperation) by university is still needed in order to plan the appropriate financing scheme for proposed energy programme in Karangmojo.
The regional energy office also plays an important role in this financial scheme. The office can propose the regional budget for financing the subsidies or pilot programme in Kecamatan Karangmojo. The regional
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office is also able to propose the budget for building capacity in the community for assistantship, mentoring and developing the proposed programme. Several alternative scheme are described below that can be chosen which scheme is appropriate for implementing in Kecamatan Karangmojo. These schemes involve all financial stakeholders, i.e. Banking, Micro Finance Institution, Usaha Kecil dan Menengah (UKM), Cooperation and Regional Energy Office as well.
1) Subsidies Scheme
Subsidies are granted either to service, commodities or activities that are viewed by governments as crucial to the livelihood of low income people or to maintain economic sectors viewed as strategic, i.e. agricultures, energy, etc. Subsidies occur when the budget do not cover the cost of production on energy. Subsidies can be either direct such as payments that reduce the cost of energy infrastructures to an investment, or indirect such as changes the prices, taxes and the provision of recurrent inputs such as training or the prevision of infrastructure. Much of logic of the subsidy rests on the assumption that there will be a supply response. Many forms of subsidy are known to have side-effect that are harmful to more self-sustaining development in the longer time or do not reach the intended beneficiaries. In addition, the capability of regional government budget to subsidy the programme is limited. Therefore, the programme can not be running well if this financial scheme will be implemented totally.
2) Credit Scheme
Credit is a financial intermediation between economic agents with credit and those with deficit. For various reasons (confidence, pooling the resource of several small leaders, skills, etc) an intermediate, generally a financial institution, is necessary to implement the financial link between the incomes, i.e. when the crops are sold and the expenses, various forms of the credit were develop to support both poor and wealthy farmer. However, the types of credit widely used in the agricultural sector (in example) are not suitable for funding the rural energy scheme for poor communities, particularly when the pay-back period is spread over a medium term period. The costs of recovering small loans in isolated areas are usually fairly high. Most of the banks do not have experience to deal with the rural credit in energy sector, i.e. for small or micro scheme. Because of the risk, banks are inclined to impose guarantees that poor rural communities have difficulty meeting. Loans are a relatively new concept in financing the energy supply for rural communities in Indonesia. Therefore, in this scheme, they (credits/loans) can be implemented by cooperation or UKM which provide the quarantines requested by the Bank or Financial Institutions.
The credit scheme is more appropriate for local entrepreneurs, i.e. food industry of “tahu and tempe” and rice milling industry which are available in Kecamatan Karangmojo. These local industries can provide the guarantee for financial institutions which is needed for credits and loans scheme. The credits and loans can finance the proposed biogas and biomass package programme for local entrepreneurs. However, the low interest of credits and loans must be considered for this proposed programme.
3) Combination of Various Funding Resources
The last proposed scheme is a combination of various funding resources which involves a range of types of funding such as grants, subsidies, loans and contributions in kind. This kind of scheme is a lesson learned from the implementation of energy financial programme which was successfully employed in Nepal by USAID and Intermediate Technology. The combination financial scheme is an appropriate scheme for financing the development of (1) the biogas installation for households, (2) the Jatropha oil for household, and (3) the Jatropha oil for water pump generator in Kecamatan Karangmojo. For this proposed scheme
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programme, the financial breakdown of the proposed combination scheme is shown in Figure 5.5. The loan of 30 % total finance is provided by local or micro financial institution and banks for households which join in the proposed programme. The loan will be paid in 12 installments for 24 months (considering the pay-back period of the programme). The communities (households and farmer groups) contribute in half of financing scheme or 50 % which can be supported by Cooperation or UKM. The rests of financial portion can be completed by 10 % from subsidy and 10 % from grants scheme which can be provided by regional governments and other foundations.
Figure 5.5: Financing Breakingdown for Financing Scheme of the Proposed Energy Programmes in Kecamatan Karangmojo
The university has a role for assistance the Cooperation and UKM for initiating, planning and managing the financial scheme to the community or local former groups.
