Opportunities and Challenges of Renewable Energy and Distributed Generation Promotion for Rural Electrification in Indonesia

This paper reviews the opportunities Distributed Generation (DG) has to solve electrification problems in Indonesia, especially for rural areas. The main approach used in this paper is comparison, with a focus on other countries who share similar conditions. Renewable energy sources are examined from the perspective of sustainability and environmental friendliness. For rural areas, geographical disadvantages serve to increase the competitiveness of renewable energy and DG. An abundant resources also becomes another strong point for renewable energy utilization. Nevertheless, there are some challenges - technological, financial and social - that DG must face. Lessons from other countries provide insights and suggestions to overcome those challenges. © Springer 2010.