East Timor is set to begin construction of its first major solar power plant in 2026, with operations expected to commence a few months later. The project marks a significant step toward reducing the country’s reliance on costly diesel imports, according to Electricidade de Timor-Leste (EDTL) Chairman Marito Ferreira.

Japan’s Itochu Corporation and Électricité de France (EDF) will jointly develop a 72 MW solar power plant and a 36 MW battery energy storage system in Manatuto. The two companies will supply power to EDTL under a 25-year power purchase agreement.

Ferreira said the project will play a key role in cutting fuel import costs and alleviating East Timor’s fiscal burden, as the nation’s power grid currently depends almost entirely on diesel generation. “If solar is introduced, we reduce the price of energy because we have an alternative,” he told Reuters at the ASEAN Energy Ministers’ meeting in Kuala Lumpur, noting that solar power is considerably cheaper than diesel-based electricity.

East Timor, also known as Timor-Leste, has achieved electrification for more than 90 per cent of its households and aims to complete full national coverage next year. The country’s current peak power demand is 100 MW, roughly one-third of its total installed capacity of 300 MW, Ferreira added.

The government has also issued licences for gold mining ventures involving Timorese companies and Australian partners, while exploring onshore natural gas reserves in central and eastern regions — developments that are expected to further increase energy demand.

Ferreira said East Timor intends to retire its diesel power plants in the “near-to-medium term” as part of its broader transition towards cleaner and cheaper energy sources. The government plans to shift to natural gas-fired power generation while expanding renewable energy investments.

“Our target is to achieve net-zero emissions by 2050, and we are committed to transforming our energy landscape through strategic renewable investments,” Ferreira said.