Last modified: 2019-08-14
Abstract
Lack of access to electricity is seen as a major constraint to economic growth and increased welfare in developing countries. Most literature agrees that electricity access is necessary for poverty reduction. This is to be expected given that researchers must deal with multi-factorial systems, with energy only one of a linked set of variables that determine poverty outcomes. The most frequently reported causal chains linking electricity access to poverty impacts is to improve productivity or output of enterprises using electricity for their activities (Grimm et al, 2013; Khandker, 2009; Kooijman-van Dijk and Clancy, 2010; Kooijman-van Dijk, 2012; Maleko, 2005; Meier et al, 2010; Mulder and Tembe, 2008; World Bank, 2008).
Yogyakarta Special Region (DIY) is one of the provinces in Indonesia that does not exist the potential for fossil energy. On the other hand, Yogyakarta has renewable energy potential that has not been widely developed. This research was conducted at Pantai Baru, Yogyakarta, which has abundant solar and wind energy potential. Before renewable electricity was developed in this region (in 2007), Dusun Ngentak was an area that had not been electrified by PLN, and was one of the disadvantaged villages in Indonesia.
This research was designed as a survey, with 68 respondents who are beneficiaries electricity in Baru Beach. Structural Equation Modeling-Partial Least Squares used to analyze the research, with 23 indicators.
This study found that there are key variables in empowering rural communities, especially in utilizing renewable electricity, so as to encourage the development of rural communities. This key variable is very important so that it can maintain the sustainability of the renewable electricity development program in rural areas, because it can encourage the income generating growth activities in rural areas.