Derisking Energy Access Investments

Inovasi is a social enterprise working to derisk energy access ivestments in Southeast Asia and Asia Pacific region. We developed a Rural Economic Development Delivery Model (RED-DM) to de-risk energy access investments in rural communities. The RED-DM relies on three pillars:

- Participatory based methodologies and observatory triangulation for business model development
- Implement appropriate innovative technologies including a smart modular minigrids and Integrated Power Units
- Ongoing technical operation and maintenance, community training, and facilitation of income generating productive use of energy

We understand rural communities, their motivations and needs, local resources and cultural sensitivities related to the success of energy access projects. Inovasi is the first private company in Indonesia to have invested in an energy-as-a-service lease agreement with rural households. Partial funding of Phase 1 was provided by Hivos Southeast Asia, and the rest of the capital investment comes from Inovasi.

(c) www.pt-inovasi.com | All Photos by: PT Inovasi Team Members

Understanding the Risks

 

In the past 18 months alone we have visited over 100 rural communities and villages and have survey and inspection data on an additional 300+ villages from previous projects.

Risk reduction for energy access investments is a complex issue. Some of the ways we minimize the risks include the following activities: Community Engagement, Sustainable Design, Operational Management and Performance Monitoring.

 

 
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Community Survey and Engagement

culture and behavior plays a big role

We make sure that not only technical aspects of the project is documented, but also the human aspects.  Our team members engage the community to understand their needs, their aspirations, and their spirit.  Not only do we take a snapshot of the current conditions, but we understand their potential, what they need for sustainable growth and how their future behavior may be different.

We identify and catalog the communities ready for INNOVATION.

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Sustainable Design

what innovations are fit for purpose

On behalf of the communities, we design the innovations that they need for growth around their needs, aspirations and their core culture.  What technologies and business models will work so that the community has access to what they need and there is resources available to implement the projects.

We design the project around the community and implement the INNOVATION.

 
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Operational Management

Professional management for sustainability

Even as we empower the communities to grow, our team members will be there alongside them as guides and as a resource to bridge the world and the remote communities.  

We manage the INNOVATIONS at the professional level with the community to ensure sustainability.

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Technological Innovations

MITIGATING RISKS THROUGH TECHNOLOGY

One of the ways risk mitigation is our Integrated Power Unit (IPU) with multiple functions and adaptable to several business models. Phase 1 has been completed for commercial deployment of the IPU in a village on Sumba Island, Indonesia

This version was designed to have three different functions:
- stand alone solar home system
- power system rechargeable at charging stations
- distributed storage unit as part of solar microgrid topology

Communities We Have Visited

 

This interactive map shows the most recent villages we have visited and the basic profiles relevant to energy use. We collect data such as existing electricity services (if any), local livelihood and commodities, number of households and much more.

Once we identified communities and villages that are ready for investments, an economic development plan based on access to renewable energy is created. This plan will be designed to be attractive for investors and lenders ready for investments.

 

Rural Climate Change Center

Many of us are educated and exposed to information about climate change and its global effects. However, modern conveniences often shield the direct impact of climate change in our day to day lives. The opposite is true for those living in rural communities. They experience direct impact of climate change to their livelihoods without really understanding the cause. The Rural Climate Change Center (R3C) aims to bridge and connect urban and rural communities for a better understanding of climate change direct impact to the food supply chain.

Download our brochure about the Rural Climate Change Center here