ADB and Partners Power Timor-Leste’s Energy Future with Landmark Investment in Solar and Battery Storage
DILI, TIMOR-LESTE (27 July 2026) — The Asian Development Bank (ADB), the Government of Canada, the Japan International Cooperation Agency (JICA), and the World Bank Group have partnered to support Timor-Leste’s first utility-scale solar and battery storage project, accelerating the country’s energy transition, creating jobs, and supporting 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 and will help to transform the country’s energy landscape by reducing reliance on imported diesel.
“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 Electricidade de Timor-Leste, Empresa Publica (EDTL, E.P.) Paulo da Silva. “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, a 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.
The total $85.7 million financing package includes $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. The agreement also includes concessional loans including a total of $21.2 million from ADB’s Leading Asia’s Private Infrastructure Fund 2 (LEAP2), supported by JICA 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.
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., 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 lead arranger for the loan package.
“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.”
“Canada is proud to support this pioneering project —the first privately-led renewable energy investment—in Timor-Leste and Canada’s first climate-fund investment in the country through the Asian Development Bank,” said Embassy of Canada to Indonesia and Timor-Leste’s Head of Development Cooperation and Chargée d’affaires Alice Birnbaum.
“JICA is pleased to support Timor-Leste’s first privately financed independent power producer solar project,” said JICA Director General, Private Sector Partnership and Finance Department, Takehiro Yasui. “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.”
“This is a landmark project for Timor-Leste, which supports the country’s transition to a more resilient and more affordable energy future,” said World Bank Group Representative for Timor-Leste David Freedman. “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.”
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 renewable energy investments in Timor-Leste and mobilize private capital for the public’s benefit.
ADB is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.
