Timor-Leste is preparing for a very important milestone in its energy history. Southeast Asia’s youngest country plans to construct its first large-scale solar energy plant, scheduled to start in 2026 and start operations a couple of months later.
The project is a strategic move to cut back the country’s near-total dependence on imported diesel, which has long been the backbone of its electricity system, while easing fiscal pressures and lowering greenhouse gas emissions.
Currently, over 90 percent of households in Timor-Leste have access to electricity, and full electrification of the country is anticipated within the near future. With a population of around 1.4 million, the country’s peak electricity demand is estimated at around 100 megawatts (MW), well below the installed generating capability of around 300 MW.
The first solar energy plant on a national scale
According to Electricidade de Timor-Leste (EDTL), the country’s first large-scale solar energy plant might be inbuilt Manatuto. The project is being developed jointly by the Japanese company Itochu Corporation and the French company Électricité de France (EDF).
Both corporations will construct a 72 MW solar energy plant integrated with a 36 MW/36 MWh battery energy storage system.
The facility will operate under a 25-year power purchase agreement with EDTL. This might be the primary fully integrated utility-scale renewable energy producer (IPP) project in Timor-Leste.
Under the project structure, the Itochu-EDF three way partnership might be fully chargeable for all stages of development, including planning, financing, construction, in addition to operation and maintenance.
In terms of production, the electricity generated is anticipated to correspond to the consumption of roughly 80,000 households, or roughly 400,000 people. In addition to improving supply reliability, the inclusion of battery storage is anticipated to assist stabilize the country’s still-constrained transmission network.
Huge marine renewable energy project
In addition to its land-based solar ambitions, Timor-Leste’s clean energy efforts have also attracted interest from other international players.
Mooreast Holdings Ltd., a Singapore Exchange Catalist-listed company, has signed a letter of intent with the Secretario de Estado de Electricidade in Água e Saneamento (SEEAS) to develop a large-scale floating renewable energy project with a capability of 300 to 500 MW over a period of 5 to 10 years.
Mooreast will conduct feasibility studies and technical assessments along the coast of Timor-Leste for a spread of floating energy technologies, including offshore wind, floating solar, hydro, ocean currents, tidal energy and wave energy. Particular emphasis might be placed on the country’s strong wind potential, each along its northern and southern coasts, which to date stays largely untapped.
Under the agreement, Mooreast received exclusive rights for 12 months to evaluate the technical and industrial feasibility of the project, in addition to to design financing structures and business models.
After this era, each parties intend to sign a Project Development Agreement (PDA) in the primary half of 2026. The agreement will govern the establishment of the three way partnership, investment arrangements, the role of Electricidade de Timor-Leste (EDTL) and the structure of the long-term power purchase agreement.
In addition to power generation, the plan also covers the modernization of the transmission network, the event of microgrids for distant areas, the implementation of smart grid systems and the exploration of opportunities to export electricity and hydrogen. These initiatives are a part of Timor-Leste’s goal of achieving 100% electrification of the country by 2030.
