Wedoany.com Report-Oct. 18, East Timor expects construction of its first large-scale solar power plant to begin in 2026, with operations starting a few months later, according to Marito Ferreira, Chairman of state utility Electricidade de Timor-Leste (EDTL). The project aims to reduce the country’s dependence on costly diesel imports and lower overall energy costs.

The project will be jointly developed by Japan’s Itochu Corp (8001.T) and Electricite de France (EDF). It includes a 72-megawatt (MW) solar power plant and a 36-MW battery energy storage system to be built in Manatuto. Under a 25-year agreement, the electricity generated will be supplied to EDTL. Ferreira said the plant will play a key role in diversifying East Timor’s energy sources and improving economic efficiency.

He stated: “If solar is introduced, we reduce the price of energy because we have an alternative.” Ferreira explained that solar power is significantly cheaper than diesel-based generation, which currently provides almost all of the nation’s electricity. Speaking on the sidelines of the ASEAN energy ministers’ meeting in Kuala Lumpur, he emphasized that the new solar plant would not only cut energy costs but also help ease the country’s fiscal burden.

East Timor, also known as Timor-Leste, has already achieved electrification for over 90% of its households and aims to reach full coverage next year. The country’s current peak demand stands at around 100 MW, about one-third of its total installed capacity of 300 MW. With a population of about 1.4 million, East Timor is seeking to expand renewable energy sources to meet growing consumption needs.

Ferreira noted that the country has granted gold mining rights to joint ventures between local companies and Australian firms, while also exploring onshore natural gas in central and eastern regions. These initiatives are expected to further drive demand for power in the coming years.

He added that East Timor plans to phase out its diesel power plants in the “near-to-medium term” and gradually transition to natural gas-fired and renewable power generation. The government’s long-term strategy aims to diversify the energy mix and enhance sustainability. Ferreira said: “Our target is to achieve net-zero emissions by 2050, so we are looking to transform our energy landscape through strategic renewable investments.”

The development of the Manatuto solar power project marks a significant milestone in East Timor’s efforts to strengthen its energy infrastructure and ensure stable, affordable electricity supply. It aligns with the country’s broader goals of achieving energy independence, promoting clean energy, and supporting long-term economic growth.