Timor-Leste Solar and BESS
Project Description
The Project entails development, design, financing, construction, ownership, operation and maintenance of 90MWp/72MWac grid-connected solar photovoltaic (PV) plant and 80MWh Battery Energy Storage System (BESS), including a 150kV transmission line that is 300 meters long and a 20/150kV substation including 2x46MVA transformers, in Laleia Administrative Post, Manatuto municipality, located approximately 70-kilometers east of Dili, the capital of Timor-Leste (the Project). All the rights, title and interests of the transmission infrastructure will be transferred to EDTL upon engineer certification that the transmission infrastructure is commissioned. The investors have applied for MIGA’s guarantee of up to US$30.1 million against the risks of Transfer Restriction, Expropriation, War and Civil Disturbance, and Breach of Contract for a period of up to 20 years. IFC is expected to provide A-loan and blended finance facility to support the Project.
Environmental Categorization
The project is a Category B under MIGA’s Policy on Environmental and Social Sustainability. This is a joint-project with IFC; in accordance with MIGA AIP, the MIGA disclosure is linked to IFC disclosure. Click here to view the Environmental and Social Review Summary prepared by IFC for their proposed support to the Project. MIGA and IFC intend to present the project for consideration jointly to their Boards of Executive Directors.
Development Impact
The Project supports Timor-Leste’s transition from expensive, oil-dependent generation to a more efficient, resilient, and fiscally sustainable power system. It delivers immediate cost savings, supports the government’s efforts to rationalize subsidies, and lays the groundwork for a diversified energy mix that can support economic growth whilst significantly reducing carbon emissions. By catalyzing a significant expansion of renewable energy and demonstrating the viability of clean power, the Project marks a pivotal move toward a more sustainable, affordable, and secure energy system for Timor-Leste — grounded in national objectives and delivering important climate and development impacts. This first-of-its-kind investment has the potential to crowd in private capital for future renewable energy projects, accelerating the country’s transition and advancing its development objectives.