Energy is a priority for every country because it plays a vital role in human life; however, over time, the availability of fossil fuels has been declining. Therefore, a viable alternative solution is to establish energy-self-sufficient villages or hamlets. The objective of this study is to develop a business institutional model for the implementation of renewable energy in Southwest Sumba, based on energy-self-sufficient villages or hamlets, in accordance with the potential of renewable natural resources in those villages. The research method employed is a hard-system approach, specifically multi-criteria decision making (MCDM), with data analysis using interpretative structural modeling (ISM). The results indicate that the institutional and energy management model that can be developed in Southwest Sumba is driven by BumDes/Village Cooperatives partnering with companies through corporate social responsibility (CSR) initiatives or other funding sources. Additionally, the local government provides support and plays a strategic role in the progress and economy of the village community. Furthermore, academics, educational institutions, or research bodies such as the Regional Planning, Research, and Innovation Agency (BAPPERIDA) fully support and educate the community regarding management and the transfer of knowledge and technology. The State Electricity Company (PLN) must also provide full support to ensure effective implementation, and community leaders and other stakeholders are called upon to foster the growth and development of energy self-reliance. Thus, the business model or institutional framework for managing renewable energy based on energy-independent villages or hamlets in Southwest Sumba or other remote areas can be effectively implemented, leveraging the region’s highly promising energy potential.

Keywords

Renewable Energy, ISM, Solar Power Plant, Southwest Sumba