Timor Solar

pending

The proposed IFC investment is a senior loan with a total package of up to US$ 85 million that will support the Laleia Solar Independent Power Producer (IPP) Project (the “Project”), a utility-scale solar photovoltaic (PV) plant with a Battery Energy Storage System (BESS). The project, a 90MWp/72MWac PV power plant with an 80 MWh BESS, is located in the Laleia area of Timor-Leste and is being developed by a consortium comprising EDF Power Solutions (EDFps; formerly EDF Renewables, a subsidiary of EDF Group) and I-Environment Investments Pacific Pty Ltd (a subsidiary of Itochu), who jointly are the project sponsors. The Project was publicly tendered by the Electricidade de Timor-Leste (EDTL, offtaker), the state-owner utility and in November 2024 the consortium won the bid to develop the project. The Project will benefit from a 25-year power purchase agreement with EDTL. A Special Purpose Vehicle (“SPV”) is being established by the consortium in Timor Leste to implement and operate this Project.The Project consists of the construction, operation, and maintenance of the solar PV plant and BESS. The construction including detailed engineering is anticipated to take about 24 months, with operations expected to begin by around March 2028.The Laleia Solar IPP consists of ground-mounted PV modules covering less than 100 hectares within a larger allocated project area of 350 hectares (the layout to be confirmed during detailed engineering). Supporting infrastructure includes inverter stations connected by underground cables, a new on-site substation to step up voltage for grid integration, and a direct connection to the existing national 150 kV transmission line along the site’s southern boundary via an overhead transmission line of approximately 0.3 kilometers. Additional facilities include secure perimeter fencing, access and internal roads, and ancillary buildings for operations and maintenance. The project will be designed, procured and constructed by China Manufacturing Engineering Corporation group (CMEC group; EPC contractor) on a turnkey basis. The scope of CMEC group work will also include a two-year period of operations and maintenance (O&M), during which CMEC will be responsible for the entire plant, namely both the PV plant and the BESS. From the third year onwards, the plan is to bring PV and BoP O&M activities in-house. For the BESS, a long-term service agreement will be established with a selected contractor to ensure ongoing support and maintenance.The project site is located on Timor-Leste’s north coast, about 70 kilometers east of Dili, within the Laleia Administrative Post of Manatuto Municipality. The project will be constructed on land selected and acquired by Electricidade de Timor-Leste. The site is directly adjacent to a national main road (Manatuto–Baucau highway), providing easy access for construction and operation. No additional roads are needed for site entry. The project site spans approximately 350 hectares in a broad, low-lying valley between the main coastal road and the shoreline. The site forms the lower part of a watershed that drains steep uplands into a flat coastal floodplain. The area is primarily used for communal grazing and features tamarind trees and mixed scrubland/grassland vegetation. The site is not intensively cultivated and is situated several kilometers from the nearest village.