2026.07.28
JICA and other international partners, including the World Bank Group and the Asian Development Bank (ADB), have joined forces to support Timor-Leste’s first utility-scale solar and battery storage project, which will help to accelerate the country’s energy transition, create jobs, and support sustainable growth and prosperity.
The landmark investment – which is also Timor Leste’s first independent power producer project – will be operated by Manatuto Renewables Power. It is set to reduce the country’s reliance on imported diesel and transform the energy landscape.
Groundbreaking ceremony
“This project is a milestone in Timor Leste’s energy transition and a key step in delivering the vision set out in the National Strategic Development Plan 2011–2030, including the goal of meeting 50 percent of the country’s energy needs from renewable sources by 2030,” said Dr. Paulo da Silva, President of the Executive Commission of state-owned utility company Electricidade de Timor-Leste, Empresa Publica (EDTL, E.P.) at the project groundbreaking ceremony in Manatuto. “It will reduce energy costs, strengthen energy security, and create a cleaner, more sustainable future for the people of Timor Leste.”
The project will support the development, construction, operation, and maintenance of a 73.7 megawatt-AC, grid-connected solar photovoltaic plant, an 80.2 megawatt-hour battery energy storage system, transmission lines, and ancillary facilities. The annual electricity generated by the plant will be equivalent to the typical consumption of approximately 80,000 households – around 400,000 people – in Timor-Leste. Electricity generated by the project will be sold to EDTL, E.P. under a 25-year power purchase agreement.
ADB acted as transaction advisor to EDTL, E.P., leading the structuring and competitive procurement of the solar project, which was awarded to EDF power solutions, S.A., subsidiary of EDF Group, and I-Environment Investments Pacific Pty Ltd, a wholly owned subsidiary of ITOCHU Corporation. The World Bank Group acted as the lead arranger for the loan package.
“This is a landmark project for Timor-Leste which supports the country’s transition to a cleaner, more resilient, and more affordable energy future,” said David Freedman, World Bank Group Representative for Timor-Leste. “The World Bank Group is proud to support this project by bringing together IFC financing, IDA-backed blended finance, and MIGA guarantees, to support private investment that will reduce dependence on imported diesel and create new opportunities for growth and employment in Timor-Leste.”
“We’re proud to have helped enable Timor-Leste’s first private sector investment in the utility-scale solar and battery technology,” said ADB Country Operations Head for Timor-Leste Michael Walsh. “By mobilizing concessional financing and showing that private sector investment in the utility-scale energy sector is feasible, this project builds investor confidence in renewables in the region—particularly for countries affected by fragility and conflict, as well as small island developing nations.”
“JICA is pleased to support Timor-Leste’s first privately financed independent power producer (IPP) solar project,” said JICA Director General, Private Sector Partnership and Finance Department Yasui Takehiro. “By participating in the Project alongside Japanese sponsors, JICA hopes to contribute to the sustainable development of Timor-Leste’s power sector and further strengthen the longstanding partnership between Japan and Timor-Leste.”
The total $85.7 million financing package includes $12.2 million from JICA, $19 million in senior loans from the World Bank Group’s International Finance Corporation (IFC) and $12.2 million from ADB. The agreement also includes concessional loans including a total of $21.2 million from ADB’s Leading Asia’s Private Infrastructure Fund 2 (LEAP2) and Canadian Climate and Nature Fund for the Private Sector in Asia (CANPA) supported by the Government of Canada; as well as $21.2 million from the World Bank Group’s International Development Association’s Private Sector Window (IDA PSW) and the IFC Concessional Capital Window. IFC’s loan is supported by a political risk insurance guarantee from IDA PSW Risk Management Facility.
MIGA, home of the World Bank Group Guarantee Platform, has also approved a political risk insurance guarantee for 20 years to EDF power solutions and I-Environment Investments Pacific, covering their investments in Manatuto Renewables Power. A portion of this will come from the MIGA Guarantee Facility, part of the IDA PSW, in the form of a first loss layer.
Together, these instruments are designed to demonstrate the viability of a renewable energy investment in Timor-Leste and mobilize private capital for public benefit.
In addition, as part of its support for the legal sector in Timor-Leste, JICA has been working with the International Cooperation Department (ICD) of the Research and Training Institute which belongs to the Ministry of Justice of Japan since 2009 to support the development of the country's legal system. As a result of these efforts, a Decree-Law for the management and use of State-owned real estate was enacted in 2025, making the use of state-owned land by the private sector possible. This Project is also being implemented on the basis of that legal framework. The improvement of the investment environment through such legal and institutional reforms is expected to further promote private investment in the future.
Furthermore, by participating in the Project alongside Japanese sponsors, JICA seeks to contribute to the sustainable development of power sector in Timor-Leste and further strengthen the cooperative relationship between Japan and Timor-Leste.
The project outline is explained below.
- Borrower
Manatuto Renewables Power S.A.
- Country (Target Areas)
The Democratic Republic of Timor-Leste
- Loan Amount
Approximately 12.2 million USD
- Project Title
Timor Solar Independent Power Project
- Project Purpose
The Project aims to contribute to reducing dependence on fossil fuels and further mitigating greenhouse gas emissions in Timor-Leste by developing and operating a solar power plant (73.7 MW) and battery storage facilities (80.2 MWh), along with related infrastructure, in Manatuto Municipality.
- Project Component
The Project consists of the development and operation of a solar power plant (73.7 MW), battery storage facilities (80.2 MWh), and related transmission and power facilities.
- Contribution to SDGs
Goal 7 (Affordable and Clean Energy)
Goal 13 (Climate Action)
Goal 17 (Partnerships for the Goals)
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