Fostering inclusive and low carbon energy transition with multi-helix engagement model using lcoe and social cost on communities in Tambunan, Sabah

Abstract

Energy is one of the key catalysts for economic growth and socio-economic development, yet energy production is the highest contributor to the greenhouse gas emission for many nations. Although Malaysia has achieved a 98% electrification rate in the past decade, there are still 2% of the population, primarily residing in rural areas, who lack access to electricity. Tambunan Sabah, is an example of such an area, where the challenging terrain makes grid electrification difficult and has resulted in slower development compared to other regions. Inclusive low carbon electrification is one of the top approaches adopted as it is able to achieve the balance of environment, social and governance. Macro level techno-economic approach as a national energy transition strategy appraises technological shifts on grid systems through economic evaluation. However, the approach may neglect the rural communities, creating a larger socio economic gap. Social technical approach at a micro level emphasized appropriate technologies for socio-economic development. To assess the significance of each participant in promoting inclusive electrification, a mixed-method study was conducted. It involved interviews and focus group discussions utilizing the Multi-Helix stakeholder engagement model, along with a multi-criteria analysis approach. In order to secure support for the adoption of innovative micro-hydropower technologies as a solution for Tambunan's challenging terrain, the study simulated 17 scenarios to assessed the financial and social implications associated with it. The significant findings indicated three types of social costs namely (i) carbon price; (ii) socio-economic gain through job creation; and (iii) feed-in tariff, a more sustainable motivation for Multi-Helix participation in supporting the inclusive low carbon electrification. Using Levelized Cost of Electricity (LCOE) and social cost, the study was able to discuss 17 scenarios result simulations based on (i) hydrokinetic technology and (ii) Archimedes screw technology for improving social livelihoods. The main findings from the simulation enabled the actors to make sustainable decisions on rural electrification using micro hydropower. It was found that funder, a new actor to the Multi-Helix model and inclusion of social cost would promote inclusive and low carbon energy transition. To sustain the liveability and wellbeing of rural communities, it is recommended to promote clean energy access for all, improve governance practices, streamline approval processes, and foster empathy towards rural communities.