As of 2023, Timor-Leste has not yet established any significant solar panel production capacity.² However, a notable installation includes the 300 kWp solar system at the UN House in Dili, which covers 75% of the daytime electricity consumption for the entire UN House in Dili.¹⁵

Timor-Leste has ambitious plans for solar energy. By 2024, the country aims to implement 72 MW of solar power.⁸ Additionally, there is one utility-scale photovoltaic (PV) solar power plant with a capacity of up to 100 MW planned for the future.⁷ These efforts are part of a broader strategy to increase the share of renewable energy in power generation from 0.2% in 2021 to 35.4% by 2030.⁸

The average cost of electricity generation in Timor-Leste is as follows:

• Diesel: $0.42 per kWh⁴
• Solar: The cost of solar electricity in Timor-Leste is not yet readily available. However, studies suggest that businesses can save between USD 8,200 and USD 120,000 annually by integrating solar energy, depending on their size and energy requirements.⁹

As of 2021, Timor-Leste’s electricity generation was entirely dependent on fossil fuels. Here is the breakdown:¹⁰

• Diesel: 100%
• Renewables (including solar, wind, hydro, etc.): 0%¹⁰

As of recent reports, 47 subdistricts in 12 of Timor-Leste’s 13 districts now have 24-hour electricity.¹¹ However, as of 2018, over 25% of villages still lacked access to the electricity grid.¹²

Electricity outages in Timor-Leste are a significant issue, often caused by maintenance needs at the low voltage level and the poor condition of the distribution network.³ These outages are particularly frequent during the rainy season when storms and heavy rainfall can damage the grid.¹³

There are approximately 2,143 families across Timor-Leste with residential solar panel installations. This initiative has been part of the East Timor Renewable Energy Electrification Plan, the country’s efforts to expand access to renewable energy, especially in rural areas.¹⁴ This initiative has been part of the country’s efforts to expand access to renewable energy, especially in rural areas.

Currently, there is one operational solar farm in Timor-Leste. This is the 300 kWp solar system at the UN House in Dili.¹⁵

The government plans to invest in one utility-scale photovoltaic (PV) solar power plant with a capacity of up to 100 MW capacity in the future.⁷

Current:
The off-grid solar market in Timor-Leste is primarily driven by rural households and communities lacking access to the national grid. Demand is increasing as awareness of solar energy solutions grows.⁵

The majority of the population in Timor-Leste relies on off-grid solutions for their electricity needs, such as diesel generators and solar home systems.¹³

From 2003 to 2021, Renew, an Australian NGO, helped install solar lighting and power to more than 2,000 homes and over 100 community centers, orphanages, schools and hospitals in remote rural villages.²⁸

Projected:
The off-grid solar market is promising due to the High Electricity Costs and short payback period for solar investments.⁹

Current:
The on-grid solar market in Timor-Leste is still developing. However, the on-grid solar PV system at the UN House in Dili, which covers 50% of its annual electricity consumption, indicates the potential for larger scale on-grid solar installations.¹⁶

Projected:
The on-grid solar market is promising due to the high-quality solar resource of the country, the short payback period for solar investments, and the government’s ambitious renewable energy goals.⁹

• Solar Thermal Technician: 1,092 USD per month.¹⁷
• Manufacturers: 175 USD per month.¹⁸
• Average Salary: ranges from USD 150 to USD 250, depending on various factors such as education, experience, and specific industry conditions.¹⁹

As of July 2024, the estimated population of Timor-Leste is approximately 1.4 million people.²⁰

The average overhead costs associated with solar panel production in Timor-Leste can be broadly categorized as follows:

• Lending Rate: 10.64%²¹
• Electricity cost for industrial users: $0.42 per kWh³
• Water tariffs for businesses: US$0.6 per m3²²
• Manufacturers Salary: 175 USD per month¹⁸

Timor-Leste’s energy infrastructure is in the early stages of development, with a focus on expanding access to electricity. Key elements include:

• Electricity Generation: Timor-Leste currently relies heavily on diesel generators for electricity production. The two main diesel power plants are the Hera Diesel Power Plant (119.5 MW) and the Betano Diesel Power Plant (136.6 MW).¹⁰ The government is exploring solar energy as a viable option to improve energy access and reliability across the country, particularly in rural areas.¹³ The electricity supply system in Timor-Leste is not competitively structured, resulting in an energy cost higher than in other countries with similar economic conditions.²³
• Transmission & Distribution: The National Electricity Grid is the largest infrastructure program in Timor-Leste, including the Hera Generating Station and a 150kV transmission system.⁵ The transmission system consists of 603.42 circuit kms, with mostly single circuit lines.²⁴
• Main Electricity Operator: Electricidade de Timor-Leste Empresa Pública (EDTL, E.P.) is the Timor-Leste’s State-Owned Company in Electricity and Energy Sector. The company was established to oversee and ensure the functioning of the electricity sector based on the Timor-Leste Government’s policy.²⁵

• The government of Timor-Leste has been actively promoting the development of its solar energy sector through the National Authority of Electricity (NAE.IP). This includes a draft law on sustainable energy to attract foreign investment and ensure a stable power supply.²⁶
• The general tax framework in Timor-Leste, outlined in the Taxes and Duties Act, Decree Law No. 8/2008, aims to ensure neutrality and fairness in the tax system. The neutrality of the taxation system is vital so that it does not become the reason for economic options or investment in substitution of market forces and competition.²⁷

• The Strategic Development Plan 2011-2030 emphasizes the importance of renewable energy in providing electricity to rural communities and encourages the use of the most appropriate renewable energy sources for local electricity production.⁵
• The plan also includes a program for solar lighting to provide approximately 100,000 families with access to electric light and the establishment of a Solar Demonstration Center in Dili.⁵
• The government is working with the United Nations Development Programme (UNDP) and the Global Environment Facility (GEF) to provide sustainable solar energy to remote communities. This includes installing solar power systems in remote villages and providing training for local technicians.²⁸

Installed

• UN House Solar Project: This project features a 300 kWp photovoltaic system that produces 400,000 kWh of clean electricity annually, enough to power 14 UN agencies and saving 286,000 kg of CO2 emissions each year.¹⁵

Projected

• Utility-Scale Solar IPP Project: This project involves the design, build, finance, operation, and maintenance of a 72-85 MW solar photovoltaic plant, along with a 36-42.5 MW/1 hour battery energy storage system and associated infrastructure around Manatuto.²⁹

Solar Power Solutions Pvt Ltd: This company is recognized as the leading solar company in Timor-Leste, specializing in solar installation, energy solutions, and manufacturing high-quality solar panels. They offer a range of services including rooftop solar plants, solar water heaters, and large-scale solar power plants, focusing on sustainability and cost-effective solutions for residential, commercial, and industrial clients.³⁰

GSOL Energy: GSOL Energy is known for implementing significant solar projects in Timor-Leste. One of their notable projects is the 300 kWp on-grid solar PV system at the UN House in Dili, which covers 50% of its annual electricity consumption. They provide solar energy solutions that include project development, system design, and installation.¹⁶

Tanfon: Tanfon is a professional solar system supplier that has been active in Timor-Leste, providing customized solar solutions. They have installed systems such as a 12 kW solar power system for residential use, showcasing their capability in addressing local energy needs with tailored solar solutions.³¹