East Timor is expecting construction of the first large solar power plant to begin next year

East Timor's state utility chair said that construction on its first large-scale solar power plant will begin in 2026, and it should be operational a few months later. This will help the country reduce expensive diesel imports.

Itochu Corp. of Japan and Electricite de France will develop a 72-megawatt photovoltaic power plant in Manatuto and a battery energy storage system of 36-MW. They will also supply electricity to Electricidade de Timor-Leste under a contract lasting 25 years.

EDTL Chairman Marito Fereira said that the solar plant would help Southeast Asia’s poorest nation – also known as Timor-Leste – reduce its fiscal burden and cut down on expensive diesel imports, which currently fuel almost all of its power grid.

Ferreira said that the cost of solar energy is lower than diesel power. He spoke on the sidelines the ASEAN Energy Ministers Meeting in Kuala Lumpur.

The youngest country in the region has electrified 90% of its homes and plans to finish the rest next year.

Ferreira stated that the current peak demand for the nation's 1.4 million people is 100 MW. This is a third of their total installed capacity, which is 300 MW.

East Timor also granted mining rights to Australian and Timorese joint ventures. It is also exploring natural gas onshore in the central and eastern Timor areas, which may further increase demand for electricity.

Ferreira stated that East Timor will retire its diesel-fired power stations in the "near to medium term." The country also hopes to switch over to natural gas-fired plants and further consider renewable investments to reduce power costs.

Our goal is to reach net-zero emission by 2050. We are therefore looking to transform the energy landscape with strategic renewable investments. Reporting by Sudarshan Varadan and Ashley Tang from Kuala Lumpur. Editing by Lincoln Feast.

(source: Reuters)