The strategy for developing wood pellets as sustainable renewable energy in Indonesia

Abstract

Concerns about carbon emissions from the use of fossil fuels are felt globally. In order to support sustainable energy in the future, efforts to reduce emissions are carried out by developing wood pellets as renewable energy. The Indonesian government is also concerned about advancing renewable energy technology to supply the country's industries and residents with electricity. Several factors and substitute sources hamper the growth of wood pellets as a renewable energy source in Indonesia. Studies from the past point to four obstacles to low-carbon development: sociocultural, economic, technological, and governmental. Therefore, this article aims to determine the inhibiting factors and seek the best decisions for developing wood pellets as a renewable energy source. Interpretive Structural Modeling (ISM) and Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) procedures were applied to determine the best strategy for developing wood pellets in Indonesia. This study recruited several vital informants to identify factors and assess each alternative. The results of the analysis using ISM provide information that the Raw Materials (D11) and Standard Products (D6) sub-factors are vital in developing wood pellets as one of the renewable energies in Indonesia. Furthermore, the analysis of selecting the best alternative using TOPSIS shows that Alternative A1 (Government Incentives), with a weight of 0.825, has the longest distance. A more thorough evaluation of the articles is still needed to produce more accurate findings.

Keywords

• Wood pellet
• Renewable energy
• Strategy
• Indonesia
• ISM
• TOPSIS