Abstract

Lack of access to electricity is seen as a significant constraint to economic growth and increased welfare in developing countries. Most literature agrees that access to electricity is necessary for poverty alleviation. It is to be expected, given that researchers must deal with multi-factorial systems, where energy is only one of a linked set of variables that determine poverty outcomes. The most frequently reported causal chain linking access to electricity to poverty’s impacts is to improve productivity or output of enterprises using electricity for their activities. Yogyakarta is one of the provinces in Indonesia that does not have the potential for fossil energy. This research was designed as a survey of 68 respondents who were electricity beneficiaries in Pantai Baru. Structural Equation Modeling-Partial Least Squares (SEM-PLS) was employed to analyze 23 indicators. The paper's novelty is on the method used in formulating the development of rural communities, which was then outlined by the Structural Equation Method – Partial Least Square, resulting in many key factors that affect empowerment improvement and agricultural community development. This study revealed critical variables in empowering rural communities, especially in utilizing renewable electricity, to encourage rural communities' development.

Highlights

  • Provision of access to electricity for villages is a strategic program for the following reasons: [1] Electricity is one of the basic needs of the community so that the government can use the provision of access to electricity as an effort to meet the whole community’s basic needs, both those who are living in cities and villages

  • The advantage of Hybrid Electric Power Plant (HEPP) electrical energy development activities in Pantai Baru was that this activity was carried out through the socio-cultural approach of local hamlet residents so that it did not eliminate the existing order

  • After the construction of HEPP and hybrid electric energy began to run, several groups were developed, such as the Culinary Groups, Tourism Awareness Group (POKDARWIS), and other community groups, such as the turtle conservation community naturally developed by the local youth in Pantai Baru

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Summary

Introduction

Provision of access to electricity for villages is a strategic program for the following reasons: [1] Electricity is one of the basic needs of the community so that the government can use the provision of access to electricity as an effort to meet the whole community’s basic needs, both those who are living in cities and villages. It is expected that the existence of electricity in the villages can empower rural communities from the backwardness and limitations of rural communities in accessing electricity. [2] Providing access to electricity for villages is expected to reduce disparities between villages and cities as disparities between regions. The existence of access to electricity in the villages can create village economic growth and encourage rural communities’ economic development. Access to electricity for rural communities is expected to empower rural communities, reduce poverty, and improve rural communities' welfare. The more specific definition of empowerment leads to increased community’s ability, capacity, productivity, creativity, and independence to get greater opportunities to access and control various resources. It can be concluded that empowerment is not a development goal but a tool to achieve development goals [1]

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