Abstract

The solar power plant program is the policy issued by the Indonesian government to assist the rural community on electrical supply in remote islands. However, there is no study to evaluate the implementation of the program for rural coastal areas. In this paper, we examine the impact of new technology adoption for rural coastal communities. We focused on the economic effect of adopting solar power generation in Karimun Regency, Kepulauan Riau. The data were collected using a survey on 262 households in two villages. Using a before-after evaluation strategy, we analyse how the economic condition of the society before and after implementing the new equipment. We find that the implementation of a solar power plant has a positive impact on increasing the household’s income. The results contribute to our understanding of how the effect of adopting the technological policy for rural coastal communities.

Highlights

  • As one of the widely archipelagic countries in the world, Indonesia has a thousand small islands a limited number of electrical demands

  • Solar power generation can be an alternative to address these two obstacles [1]. This is supported by the geographical situation of Indonesia which is a tropical region so that it will get more sun exposure

  • The Indonesian government, through the Ministry of Energy and Mineral Resources and the Ministry of Marine and Fisheries, provides solar power plants to help the people in small islands in remote areas in fulfilling an electrical need

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Summary

Introduction

As one of the widely archipelagic countries in the world, Indonesia has a thousand small islands a limited number of electrical demands. Solar power generation can be an alternative to address these two obstacles [1] This is supported by the geographical situation of Indonesia which is a tropical region so that it will get more sun exposure. The Indonesian government, through the Ministry of Energy and Mineral Resources and the Ministry of Marine and Fisheries, provides solar power plants to help the people in small islands in remote areas in fulfilling an electrical need. The programme is set up through GIZ’s (Deutsche Gesellschaft für Internationale Zusammenarbeit) aid [2]. The government has been an optimistic plan to enhance the program until 250 MWp by 2025 [3]

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