Key facts
- The ADB and World Bank are funding Timor-Leste's first utility-scale solar and battery storage project.
- The project includes a 74MW solar plant and an 80MWh battery system.
- Construction began last week and is expected to finish by 2028.
- The facility will deliver 134GWh annually and avoid nearly 93,000 t/yr of CO2 equivalent.
- Total funding for the project is $85.7 million.
The Asian Development Bank (ADB) and World Bank, in conjunction with Japan and Canada, are financing Timor-Leste's inaugural utility-scale solar and battery storage initiative. This project marks the country's first independent power project of its kind.
Manatuto Renewables Power, established by subsidiaries of French utility EDF and Japanese firm Itochu, is spearheading the development. Construction commenced last week, with an anticipated completion date in 2028, according to the Timor-Leste embassy in Tokyo.
Upon becoming operational, the facility is projected to generate 134GWh of electricity annually and significantly reduce carbon emissions by nearly 93,000 tonnes of CO2 equivalent per year. The generated electricity will be supplied to the state utility, Eletricidade de Timor Leste, Empresa Pública, under a 25-year power purchase agreement.
The financial backing includes $33.4 million from the ADB, comprising concessional loans supported by Japan and Canada. The World Bank is contributing $40.2 million, also through concessional loans. Japan is providing an additional $12.2 million, bringing the total funding to $85.7 million. Furthermore, the World Bank has approved a 20-year political risk insurance for the EDF and Itochu entities involved.
This development aligns with Timor-Leste's objective to meet half of its energy requirements from renewable sources by 2030. Currently, the nation's power capacity of approximately 276MW relies almost entirely on diesel-based thermal plants, as reported by the ADB.