The Asian Development Bank (ADB), the Government of Canada, the Japan International Cooperation Agency (JICA), and the World Bank Group have joined forces to finance Timor-Leste’s first utility-scale solar and battery storage project, announced on 27 July 2026 in Dili. The partnership will support the country’s inaugural independent power producer project, to be operated by Manatuto Renewables Power, according to a press release by ADB. The initiative aims to accelerate Timor-Leste’s energy transition, generate jobs, and reduce reliance on imported diesel. It also marks a milestone for private-sector engagement in the country’s renewable energy sector. The project is expected to reshape the national energy landscape and advance long-term sustainability goals.
Timor-Leste’s National Strategic Development Plan 2011–2030 sets a target of meeting 50% of the country’s energy needs from renewable sources by 2030. The new project directly supports that objective and represents the first privately-led renewable energy investment in the country. It is also Canada’s first climate-fund investment in Timor-Leste through ADB. The initiative brings together concessional financing, blended finance instruments, and guarantees to attract private capital. Together, these tools are designed to demonstrate the viability of renewable energy investments in Timor-Leste.
The project will develop, build, and operate a 73.7 megawatt-AC grid-connected solar photovoltaic plant, an 80.2 megawatt-hour battery energy storage system, transmission lines, and ancillary facilities. Annual electricity generation will match the typical consumption of roughly 80,000 households, or about 400,000 people, in Timor-Leste. The power will be sold to Electricidade de Timor-Leste, Empresa Publica (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. The contract was awarded to EDF power solutions, S.A., a subsidiary of EDF Group, and I-Environment Investments Pacific Pty Ltd, a wholly owned subsidiary of ITOCHU Corporation.
The total financing package amounts to $85.7 million, including $12.2 million in senior loans from ADB, $19 million from the World Bank Group’s International Finance Corporation (IFC), and $12.2 million from JICA. Concessional loans include $21.2 million from ADB’s Leading Asia’s Private Infrastructure Fund 2 (LEAP2), supported by JICA and the Canadian Climate and Nature Fund for the Private Sector in Asia (CANPA), plus $21.2 million from the World Bank Group’s International Development Association’s Private Sector Window (IDA PSW) and the IFC Concessional Capital Window. MIGA has also approved a 20-year political risk insurance guarantee to EDF power solutions and I-Environment Investments Pacific.
“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% of the country’s energy needs from renewable sources by 2030,” said Executive Commission President of EDTL, E.P. Paulo da Silva.
He added that it will reduce energy costs, strengthen energy security, and create a cleaner future for the people of Timor-Leste.
ADB Country Operations Head for Timor-Leste Michael Walsh said the project builds investor confidence in renewables across the region, particularly for countries affected by fragility and conflict and small island developing nations. Embassy of Canada to Indonesia and Timor-Leste’s Head of Development Cooperation and Chargée d’affaires Alice Birnbaum highlighted Canada’s pride in supporting this pioneering initiative. JICA Director General, Private Sector Partnership and Finance Department, Takehiro Yasui noted that participation alongside Japanese sponsors will strengthen the partnership between Japan and Timor-Leste. World Bank Group Representative for Timor-Leste David Freedman described the effort as a landmark project supporting a more resilient and affordable energy future. Together, the partners aim to mobilize private capital and demonstrate the feasibility of renewable energy investment for the public’s benefit.