The active involvement of the community is very important for the development of bioenergy to fulfill the principles of justice and bring benefits at the grassroots level. Community involvement must start from upstream to downstream, proceeding from a planning and development stage to the ownership of bioenergy projects.
This approach prioritizes local needs and aspirations, social inclusion, and strengthens the local economy. Community-based bioenergy development can also help address historic inequalities in the energy sector and ensure the distribution of benefits of renewable energy across society.
Several regions in Indonesia have implemented community-based bioenergy development, such as the Panggung Lestari Village-owned Enterprise (BUMDes) program in Bantul, Yogyakarta, which processes Nyamplung plants into tamanu oil and biofuels.
Another example is the GenOil group in Makassar City, which collects used cooking oil to be used as biodiesel for fishermen. However, technological adaptation and financing constraints are the main challenges in developing community-based bioenergy.
JET-P as Rebranding Driver for Bioenergy
These obstacles are the result of slow adaptation and transfer of technology, monopoly on raw materials, and subsidies that are not inclusive. Innovation and adaptation are driven by market availability, demand and competitive prices, which will also directly determine the stable availability of raw materials in the supply chain.
In addressing the drivers of innovation and technological adaptation, bioenergy development requires interventions such as regulations, business models and financing schemes. The Just Energy Transition Partnership (JET-P) scheme is a potential alternative to overcome these obstacles.