IBEKA sources grants but increasingly loans and equity investment to finance these plants.

Lobbying from IBEKA over ten years helped change the law, so now PLN must buy electricity from micro and mini hydro. But in the 1990s there was no requirement for the national grid operator (PLN) to buy the electricity.

IBEKA recognised that the hydro resources and human resources of local communities could be applied just as well to grid-connected hydro schemes, and such schemes could provide a much-needed additional source of power for the national grid. IBEKA involvement before, during and after construction can last for around 18 months. Once the scheme is commissioned, IBEKA continues to provide support until both the technical and financial management is running smoothly. IBEKA engineers source equipment and build the plant, with help – both voluntary and paid – from community members, at the same time providing training. In parallel a plan for the management of the scheme, electricity tariffs, and a structure for community ownership are developed. When grant funding is identified a detailed technical design is developed to provide sufficient capacity for community needs. IBEKA starts by discussing the opportunity of hydro with the community at a potential site. In 2011 it had an income of about US$1.5 million and 38 staff. IBEKA and the hydro schemes that it builds have been mainly funded by grants from a wide range of sources including central and local governments in Indonesia, the Embassy of Japan, UN-ESCAP and GIZ. A core principle of its work is to develop human resources as well as physical resources. Its mission is to promote community development via the provision of local energy, mainly hydroelectricity, and also clean water. IBEKA (Institut Bisnis dan Ekonomi Kerakyatan: the people-centred business and economic institute) is a not-for-profit organisation, founded in 1992 by engineer Iskandar Kuntoadji, the husband of Executive Director Tri Mumpuni. Founder Trimumpuni at Cinta Mekar Microhydro Power Plant. And IBEKA has used grid expansion as a new opportunity, with communities now owning and managing grid-connected hydro schemes as well. Through long-term involvement IBEKA makes sure that the community has the skills to manage and maintain the scheme, and community ownership which brings a continuing source of income. IBEKA works in partnership with communities to develop off-grid hydro schemes that stay in use. But a survey by GTZ (the German development agency) found over 1,000 micro-hydro plants that had been abandoned through lack of maintenance. Rainfall is plentiful throughout the year in many parts of Indonesia, so there is considerable potential to provide electricity using off-grid hydro schemes. Even on the densely-populated main island of Java, there are mountainous areas where the grid has not reached. Many people live in scattered communities on remote islands. Despite a rapidly growing economy and thriving cities, over one third of the population of Indonesia lacks grid electricity.

Micro hydro power for off grid houses