Timor-Leste Secures Major Backing for First Utility-Scale Solar Project

The project includes the construction and operation of a 73.7-megawatt grid-connected solar photovoltaic plant, an 80.2-megawatt-hour battery energy storage system, transmission lines and supporting infrastructure.

Timor-Leste is set to take a major step towards cleaner energy with the launch of its first utility-scale solar and battery storage project, backed by a partnership between the Asian Development Bank (ADB), the Government of Canada, the Japan International Cooperation Agency (JICA) and the World Bank Group.

The project is also the country's first independent power producer initiative and will be developed by Manatuto Renewables Power. It is expected to reduce Timor-Leste's dependence on imported diesel while supporting economic growth, creating jobs and strengthening long-term energy security.

Officials say the investment aligns with Timor-Leste's National Strategic Development Plan 2011–2030, which targets meeting 50% of the country's energy needs from renewable sources by the end of the decade.

Solar plant to power around 400,000 people

The project includes the construction and operation of a 73.7-megawatt grid-connected solar photovoltaic plant, an 80.2-megawatt-hour battery energy storage system, transmission lines and supporting infrastructure.

Once operational, the facility is expected to generate enough electricity each year to meet the typical needs of about 80,000 households, benefiting approximately 400,000 people across Timor-Leste.

Electricity produced by the project will be supplied to Electricidade de Timor-Leste (EDTL, E.P.) under a 25-year power purchase agreement, providing a stable source of renewable electricity while lowering reliance on expensive imported fuel.

$85.7 million financing package supports clean energy

The project is supported by a total financing package of $85.7 million, bringing together funding from several international development partners.

ADB will provide $12.2 million in senior loans, alongside $19 million from the International Finance Corporation (IFC) and $12.2 million from JICA. Additional concessional financing includes $21.2 million through ADB's Leading Asia's Private Infrastructure Fund 2 (LEAP2), supported by JICA and Canada's Climate and Nature Fund for the Private Sector in Asia (CANPA), as well as $21.2 million from the World Bank Group's International Development Association Private Sector Window and the IFC Concessional Capital Window.

ADB also served as transaction adviser to EDTL, managing the project's competitive procurement process. The contract was awarded to EDF power solutions, a subsidiary of EDF Group, and I-Environment Investments Pacific Pty Ltd, a wholly owned subsidiary of ITOCHU Corporation. The World Bank Group acted as lead arranger for the financing package.

Project expected to boost investor confidence

Development partners described the project as a milestone that could encourage greater private investment in renewable energy across fragile and small island economies.

The World Bank Group is also supporting the project through political risk insurance provided by the Multilateral Investment Guarantee Agency (MIGA), offering a 20-year guarantee for the project sponsors. Part of the guarantee is backed by the IDA Private Sector Window to reduce investment risks and attract private capital.

Together, the financing, guarantees and technical support are expected to demonstrate that large-scale renewable energy projects can be successfully developed in Timor-Leste, helping the country build a cleaner, more resilient and more affordable energy system while creating new economic opportunities.