Indonesia is working toward renewable energy targets of a 23% share by 2025 and at least 31% by 2030. The role of local initiatives in advancing this transition becomes increasingly significant. Bali presents a unique case study within this national effort. The island's growing energy demand, combined with its commitment and attachment to sustainability value, makes it a focal point for exploring the potential of Community Energy (CE) initiatives—decentralized, community-driven projects aimed at producing and managing renewable energy. This thesis investigates the development of CE initiatives in Bali using the Strategic Niche Management (SNM) framework, set within the broader context of Multi-Level Perspective (MLP) theory. Despite Bali's proactive stance on renewable energy, evidenced by its local government’s energy plans, the region faces significant challenges, including regulatory barriers, limited financial resources, and technical constraints. These challenges hinder the growth of CE projects that could otherwise play a vital role in the island's energy transition. Through a comprehensive approach that combines desk research, media analysis, and interviews with key stakeholders—including government officials, NGOs, local practitioners, and academics—this study examines the socio-technical landscape of Bali's energy sector. It explores the interplay between local cultural practices, government policies, and external pressures, such as international commitments and economic crises, in shaping the development of CE initiatives.
The research findings reveal the critical importance of local networks and cultural practices, particularly the involvement of customary villages, in supporting CE projects. However, the economic viability of these initiatives is often compromised by the availability of subsidized electricity from the Java-Bali grid, which discourages local investment in renewable energy infrastructure. The thesis identifies key barriers and opportunities, highlighting the need for streamlined regulatory processes, enhanced funding mechanisms, and capacity-building programs to foster the growth of CE in Bali.