Timor-Leste is preparing to mark a major milestone in its energy history. Southeast Asia’s youngest nation is targeting the construction of its first large-scale solar power plant, scheduled to begin in 2026 and enter operation a few months later.
The project represents a strategic move to reduce the country’s near-total dependence on imported diesel fuel, which has long underpinned its electricity system, while also easing fiscal pressure and lowering carbon emissions.
Currently, more than 90 percent of households in Timor-Leste have access to electricity, with full national electrification expected in the near future. With a population of around 1.4 million, the country’s peak electricity demand is estimated at approximately 100 megawatts (MW), far below its installed generation capacity of about 300 MW.
The First National-Scale Solar Power Plant
According to information from Electricidade de Timor-Leste (EDTL), the country’s first large-scale solar power plant will be built in Manatuto. The project is being jointly developed by Japan’s Itochu Corporation and France’s Électricité de France (EDF).
The two companies will construct a 72 MW solar power plant integrated with a battery energy storage system with a capacity of 36 MW/36 MWh.
The facility will operate under a 25-year power purchase agreement with EDTL. It will be Timor-Leste’s first fully integrated, utility-scale renewable energy Independent Power Producer (IPP) project.
Under the project structure, the Itochu–EDF joint venture will be fully responsible for all stages of development, including planning, financing, construction, as well as operation and maintenance.
In terms of output, the electricity generated is expected to be equivalent to the consumption of around 80,000 households, or approximately 400,000 people. Beyond improving supply reliability, the inclusion of battery storage is expected to help stabilize the country’s still-limited national transmission network.
A Massive Offshore Renewable Energy Project
Beyond its onshore solar ambitions, Timor-Leste’s clean energy push has also attracted the interest of other international players.
Mooreast Holdings Ltd., a company listed on the Singapore Exchange Catalist, has signed a Letter of Intent with the Secretario de Estado de Electricidade, Água e Saneamento (SEEAS) to develop a large-scale floating renewable energy project with a capacity of between 300 and 500 MW over a five- to ten-year period.
Mooreast will conduct feasibility studies and technical assessments along Timor-Leste’s coastline for a range of floating energy technologies, including offshore wind, floating solar, hydro, ocean currents, tidal power, and wave energy. Particular emphasis will be placed on the country’s strong wind potential along both its northern and southern coasts, which has so far remained largely untapped.
Under the agreement, Mooreast has been granted exclusive rights for 12 months to evaluate the project’s technical and commercial viability, as well as to design financing structures and business models.
Following this period, the two parties aim to sign a Project Development Agreement (PDA) in the first half of 2026. The agreement will govern the establishment of a joint venture, investment arrangements, the role of Electricidade de Timor-Leste (EDTL), and the structure of a long-term Power Purchase Agreement.
In addition to power generation, the plan also includes upgrades to the transmission network, the development of microgrids for remote areas, the deployment of smart grid systems, and the exploration of opportunities for electricity and hydrogen exports. These initiatives align with Timor-Leste’s goal of achieving 100 percent national electrification by 2030.
