This study was conducted to evaluate the impacts and challenges of off-grid renewable energy (RE) institutions built by the Ministry of Energy and Mineral Resources (ESDM) funding schemes in rural areas. Evaluation of the previous aspects focused on the study of the results of renewable energy (Solar-PV and micro-hydro grid) in household access to the economic, social and environmental aspects of rural beneficiaries. The second evaluation aspect examines the challenges and opportunities of off-grid development institutions in ensuring their sustainable access to electricity.

This study uses a comprehensive method that combines macro and micro analysis as well as quantitative and qualitative data collection techniques.

At the study sites, the study investigated outcomes and institutions using a mixed methods approach. Data was collected through a household survey (questionnaire) as well as observation and interviews in the provinces of West Sumatra, East Nusa Tenggara and Southeast Sulawesi. The survey covered 488 household respondents in 8 treatment locations and 9 control locations. Qualitative data was obtained mainly through observation and interviews with 374 informants in 12 villages – consisting of household users, village electricity operators, basic service providers such as local health workers and teachers and village government officials. We also interviewed 25 stakeholders in central and local government officials and contractors. In addition, public documents related to off-grid governance are also analyzed.

To complement the micro-analysis approach, cost-effectiveness analyzes and social life cycle assessments were used to analyze the economic and social performance of selected renewable energy micro-networks from a macro perspective. This macro approach compares these renewable energy microgrids to conventional diesel-based electricity in Indonesia using cost composition data provided by each installed microgrid contractor and the Social Hotspots Database (SHDB).