Pico hydro technology brings clean energy to remote villages

For 60 million Indonesians, the only way to access electricity is to use diesel generators, kerosene, or firewood, all of which have negative health and environmental impacts. This is a serious problem for the country’s disadvantaged rural communities.

Two entrepreneurs have proposed a solution to this problem: a start up company manufacturing pico hydro turbines that bring affordable, clean electricity to off-grid villages. The turbines generate electricity by harnessing the power of falling water, which is abundant in Indonesia’s mountainous and wet terrain. Not only does this initiative provide a low cost energy source for villages, but it has also created semi-skilled employment for locals.

Our team in Jakarta has provided technical and emntoring support to the enterprise, helping them formulate a sound business plan and seek sales through micro finance institutions, banks, and industry. This new venture has even developed additional low-carbon sources of income, notably negotiating with power companies to sell on excess energy. Today the LCEF is providing a loan to help the initiative develop.