Model for environmentally sound management of energy in the small islands, the case: development of physic nut plantation to support renewable energy base electrical system in Nusa Penida, Bali

Abstract

The increase of petroleum international market price cause the Indonesian Government impose a petroleum price policy that is rising the national fuel price. The policy, however, highly impact the community in the small islands, especially on the energy sector as the fuel price in the area is much higher than the national fixed market price. In contrast, sustainability of electric supply is needed for tourism development and for social economic activities in such area. To fulfill the electricity requirement in remote areas and small islands, Indonesian government runs the self-sufficient energy village program. In Nusa Penida, an area that consists of three islands in Bali Province, the program is run by developing Energy Tourism Area. The main goal of this study was to build a model of environmentally sound management of energy in the small islands, the case of Nusa Penida in Bali. The objectives of the study were to identify the potency of several local renewable energy resources, to analyze the financial feasibility of the use of the renewable energy, and to analyze the environmental impact of the renewable energy use in the small islands. Data analysis methods for energy in the small islands management were : the potency of renewable energy resources by descriptive method; financial feasibility by instruments of investment criteria (net present value, benefit cost ratio, and internal rate of return); and environmental impact by the change of environmental burden in decrease of diesel oil consumption and the emission of CO, NOx, SOx, and total particle. “RE-Nusa” model, the temporal dimension model of renewable energy management which was constructed by system dynamics approach, can predict the behaviour of the renewable energy management system in Nusa Penida. The system has a significant contribution on the electric production system during the period of May to August in every year. This results in a decrease of diesel power generation burden and diesel oil consumption in the island. It is therefore, the renewable energy management model, when is applied to the electrical system unit in Nusa Penida Island, will potentially reduce the emission of CO as 28.47%, NOx as 37.46%, SOx as 33.40%, and total particle as 30.582% for the next ten years.