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Economic Potential From Rural Energy Supply With Biogas From Community Owned Livestock

Economic Potential From Rural Energy Supply With Biogas From Community Owned Livestock

Economic Potential From Rural Energy Supply With Biogas From Community Owned Livestock

Introduction

Indonesian Government (2014-2019) is committed to supply additional 35,000 MegaWatts of Electricity to support electricity needs of Indonesia. This plan is due to the gap of energy supply as demands from economic development, such as residential, business and industry activities increase. This study aims to assess how far Selo Sub-District has been able to be an energy resilient village. To analyze this, we took a survey at two villages that adopted biogas technology to provide energy at household levels. Despite the adoption is still slow (limited), we recognize the promising results of biogas adoption (3.6 households/year), particularly at the later stage of adoption. There are three factors that affect the implementation of rural biogas adoption, among others, the availability of resources, financial collaboration between governments and non government organizations and participation of stakeholders. These three factors are found in Selo although in a different condition. Rural biogas development in Selo Sub-District Boyolali shows a potential for an energy resilient village. In a wider context, the ability to provide energy at village scale level can be promising news.

 

Methodhology

In order to gather direct information on biogas adoption of farmers in Selo, Boyolali, questionnaires and interview tools have been set up; and a field survey was held in July 2015, with a span of three days. The questionnaires included questions on basic information on the farmer’s household, energy consumption and costs of both biogas users and non-users. The survey also included questions on the benefits and costs adopters have experienced themselves. As the data originated from specific entities only, i.e. farmers who do not use biogas (N=5) and farmers who do (N=21).

 

This study uses qualitative and quantitative analysis. As for the qualitative, relationships between data collection and analysis methods are very closely linked. Data and information obtained in the study and then tested against a variety of concepts and theories that exist. The procedures of qualitative analysis was taken through the data reduction, data display, and conclusion drawing (Miles and Huberman, 1994). Relevant secondary data was also obtained from published and unpublished material, including the internet, to complement the primary data. The data collected from the questionnaire survey was analyzed using Statistical Package for the Social Sciences (SPSS) using descriptive statistics.

 

Result

Based on interviews, Mount Merapi, which erupted in several years ago cause damage and lead to huge losses in agriculture, reaching IDR 72 billion. People who suffered losses most of the agricultural sector of horticulture for more than 1,100 hectares of crops in Selo, Cepogo, and Musuk. The worst damage experienced by farmers who are in Zone 3 in Selo, such as Lencoh Village, Klakah Village, and Jrakah Village which is only less than 7 km from the summit of Mount Merapi. On the other hand, livestock sector also suffered a loss that isfrom a population of 61 thousand of dairy cows and 81.5 thousand of cattle, cows affected by the eruption of Mount Merapi were around 28.504 thousand (Rahayu et al., 2013).

 

Agriculture and cattle is the foundation of life for the people in the slope of Mount Merapi. But livestock and farming also had a negative impact in the form of environmental pollution due to non-optimized waste management. Each cow produces fresh dung every day as much as 15-20 kg and 10-15 liters of urine. On the other hand, the forests of Mount Merapi and Merbabu decreased drastically due to uncontrolled logging activities. The wood was utilized by people as firewood and charcoal for cooking and other household needs.

 

Based on interview with Sahabat Lahan Indonesia, biogas then chosen to be the solution to overcome this problem. Biogas adoption in Selo, Boyolali started from this last decade. Unfortunately, the development of biogas construction was not easy. People were reluctant to apply biogas because its expensive investment with a price range between 6-25 million (SLI, 2012). Through the program “Merapi Landcare Program” of Sahabat Lahan Indonesia, a new approach to biogas technology is more simple, inexpensive and fair distribution. For each unit of biogas with a capacity of 4m3 only require an investment of IDR 3 million.

 

Before using biogas, people in Selo spend money to buy LPG for IDR 60.000/month. Besides LPG, they also spend about 4-6 tie woods which is equivalent to one tree and the cost of IDR 120.000-180,000/month. Total energy costs on average in a month to reach Rp. 180000-240000/ month/ household. However, after using biogas at a cost of only IDR 3 million, farmers in Selo has been able to save costs between Rp. 180000-240000/ month/ household. It means that the initial investment will be paid off after the use of biogas in 13-17 months. Afterwards, they will enjoy free energy. On the other hand, the biogas unit turned out to prevent the trees are cut every month. If there are 100 biogas units in Selo means farmers do not cut down trees as much as 100 stems/ month or 1200 stems/ year (SLI, 2012).

 

The timeline shows an increasing in term of rural biogas adoption from 3 households at the beginning to 65 households in 2015. Thus, the adoption rate is about 3.6 household/year. Despite it’s increasing adopters, the adoption rate is considered small. This is still a challenge faced in the implementation of biogas since the production of energy is small. According to Hnyine et al (2015), the biogas production in Boyolali District where Selo is located can be estimated to 1.5 TWh. That assumes if all livestock manure in Boyolali District is used for biogas production.

 

External actors (Hivos, Biru, Infront, Local Government and National Park Mount Merapi) are needed to stimulate the adoptation of biogas. This is related with technology transfer and also initial cost for biogas installation. It is also important to acknowledge the role of farmer groups, head of village, and youth group througout this process. The external actors can be distinguished into non government actors, such as Hivos, Biru and Infront while government actors are National Park Mt Merapi and Local Government. Non government actors have technology that can be shared to the community while government actors can provide budgets and also local regulation to stimulate the process and projects of rural biogas adoption as described here.

 

Figure 1. Location of Selo Sub District

 

 

Conclusion

This paper shows how a village can obtain it’s own resources to produce energy needed within the village. There are three factors that affect the implementation of rural biogas adoption, among others, the availability of resources, financial collaboration between governments and non government organizations and participation of stakeholders. These three factors are found in Selo although in a different condition. Rural biogas development in Selo Sub-District Boyolali shows a potential for an energy resilient village. The utilization of biogas in Selo Sub-District is an example where a village can be promoted to provide it’s own energy sources, although partially. There are many available resources around a villagethat may not be utilized properly for energy supply, such as livestock waste (manure), solar energy, wind energy and hydro energy. Considering the small scale needed for a village size energy, these available resources can fulfill a village needs if managed well.

 

There are challenges to apply such technology although the technology can be considered ‘simple’ since they are available in the market and scale as well as skills are accessible and transferable. These challenges include initial cost to install the technology that may be difficult for a poor farmer. For example, the cost for installing a bio-digester, about IDR 5 million can be too expensive for a livestock farmer. If one wants to install other technology, such as solar panel, windmill and micro hydro, the cost can be much more expensive. However, at a village level, the budget can be taken from village budget or collective funding.

 

In the context of rural development, the ability to provide energy at village scale level can be promising news. With the spirit of Ministry of Rural, Disadvantage Regional Development and Transmigration to support electricity in 15,000 villages in Indonesia, resilient village can be promoted through the use of available material in the villages.

 

LIST OF RESEARCH OUTPUT

1. Sudah disubmit ke Jurnal Forum Geografi dengan Judul: What do farmers gain from biogas adoption? Economic Assessment of Rural Biogas Implementation in Boyolali District.
2. Sudah dipresentasikan ke Konferensi Internasional 3rd Planocosmo dengan judul Energy Resilient Village Potential: Lessons Learned from Renewable Energy of Livestock Waste in Boyolali, Indonesia.

 

Figure 2. Biogas Digester at One of Villager’s.

 

HEAD OF RESEARCH TEAM : Deni Nugraha, SE., MSi
TEAM MEMBERS : Rintakasari Vitri Ayuningtyas, ST., MT.
OFFICIAL ADDRESS : Research Group of Economic System and Modelling (KK SPE), Study Programme of Urban and Regional Planning (PWK), School of Architecture, Planning and Policy Development (SAPPK) Labtex IXA Building, Jl. Ganesha 10 Bandung 40132
EMAIL : deni.nugraha@sappk.itb.ac.id

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