Umwelt und Ressourcen

Projekt: Electrification through Micro Hydro Power Sites in Rural Indonesia


09/2010 - 06/2014 (abgeschlossen)


Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ); NL Agency, Netherland’s Ministry of Foreign Affairs, Policy and Operations Evaluation Department (IOB)

Projektteam (RWI)

Dr. Gunther Bensch (Leitung), Prof. Dr. Jörg Peters, Dr. Maximiliane Sievert


ENTEC Indonesia




While urban Indonesia is almost completely electrified, two-thirds of the rural population still lack access to electricity. In many cases, the mountainous rural areas are difficult to access and sparsely populated implying high investment costs for infrastructure extension. Against this background the German International Cooperation (GIZ) supports the implementation of micro hydro plants (MHP) in rural communities to supply the population with decentralized electricity. During its first project phase between 2006 and 2009, GIZ has supported the construction of 96 MHPs on two of the five main islands of Indonesia, Sulawesi and Sumatra. These activities have been funded as part of the Dutch-German Energy Partnership Energising Development (EnDev), an output-oriented programme that aims at providing modern energy to 6.1 million people in 21 countries. In a second project phase starting in 2010 (EnDev II), more than 200 micro-hydro schemes are planned to be supported. RWI has been assigned to assess the socio-economic impacts of electrification through MHP on household level through both a cross-sectional and a difference in differences approach. For this purpose, 800 households were interviewed in a first survey wave in September and November 2010. Half of them are located in 20 EnDev II villages that only got connected to an MHP after data collection. The remainder of the sample has already been using electricity at that time from a working micro hydro scheme supported within EnDev I. The second survey wave is scheduled for autumn 2012. The cross-sectional arm of the study allowed for gauging the impacts of the connection to an MHP already after the first wave at the end of 2010. For the electrified, hence, treated EnDev I households, comparable EnDev II households have been used as controls. Having follow-up data at hand at the end of 2012, difference in differences estimators can be applied to more rigorously assess the impacts of the connection to an MHP. In this approach, the EnDev I households already connected in 2010 and still connected in 2012 will serve as a reference group for the EnDev II households who got treated between the 2010 and 2012 survey. This prevents that changes induced by external influences (e.g. general economic development) are falsely ascribed to the treatment. For the reference group of EnDev II households it was found in 2010 that an important share already used “pre-electrification” sources like generators or very simple traditional waterwheels – so called kincirs. The impact assessment will therefore not only illustrate the change from traditional energy sources like kerosene to electricity but also deliver impact findings on using a modern electricity source in comparison to pre-electrification sources that tend to be either costly and dirty (generators), or unstable and weak (kincir).