Timor-Leste Launches First Utility-Scale Solar Power Project

The project, which is also the country's first independent power producer (IPP) initiative, will be developed and operated by Manatuto Renewables Power.

Timor-Leste has taken a major step towards cleaner energy with the launch of its first utility-scale solar and battery storage project, supported by an international coalition that includes the World Bank Group, Asian Development Bank (ADB), the Government of Canada, and the Japan International Cooperation Agency (JICA).

The project, which is also the country's first independent power producer (IPP) initiative, will be developed and operated by Manatuto Renewables Power. It is expected to reduce Timor-Leste's dependence on imported diesel, strengthen energy security and support sustainable economic growth.

Speaking at the groundbreaking ceremony, Dr. Paulo da Silva, President of the Executive Commission of state-owned utility Electricidade de Timor-Leste (EDTL, E.P.), said the project is an important milestone in achieving the country's goal of generating 50 percent of its electricity from renewable sources by 2030, as outlined in the National Strategic Development Plan 2011–2030.

Solar plant to power around 400,000 people

The project includes the construction of a 73.7-megawatt alternating current (MW-AC) 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 average needs of around 80,000 households, equivalent to approximately 400,000 people. Electricity produced by the plant will be supplied to EDTL under a 25-year power purchase agreement.

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

$85.7 million financing package attracts private investment

The project is supported by a total financing package of $85.7 million, combining loans, concessional funding and political risk guarantees from multiple development partners.

The package includes $19 million in senior loans from the World Bank Group's International Finance Corporation (IFC), $12.2 million from ADB and $12.2 million from JICA. An additional $42.4 million comes through concessional financing supported by ADB's Leading Asia's Private Infrastructure Fund 2 (LEAP2), the Canadian Climate and Nature Fund for the Private Sector in Asia (CANPA), and the World Bank Group's International Development Association Private Sector Window (IDA PSW).

The Multilateral Investment Guarantee Agency (MIGA) has also approved a 20-year political risk insurance guarantee for the project's private investors, helping reduce investment risks and encourage future renewable energy projects in Timor-Leste.

Project expected to strengthen economy and energy security

World Bank Group Representative David Freedman said the project demonstrates how blended finance and private investment can help countries reduce reliance on imported fossil fuels while creating new opportunities for jobs and economic growth.

ADB Country Operations Head for Timor-Leste Michael Walsh said the initiative proves that private investment in large-scale renewable energy is possible even in small island and fragile economies. JICA Director General Takehiro Yasui added that the project strengthens the long-standing partnership between Japan and Timor-Leste while supporting the country's transition to a more sustainable power sector.

The international partners believe the project will serve as a model for future renewable energy investments, helping attract private capital while supporting Timor-Leste's long-term energy transformation.