Global law firm Ashurst Perkins Coie represented International Finance Corporation (IFC), Asian Development Bank (ADB) and Japan International Cooperation Agency (JICA) on the development and US$85.7 million financing of a solar and battery energy storage system (BESS) project in Timor-Leste.
The project involves the development, construction, operation, and maintenance of a 73.7 megawatt-AC grid-connected solar photovoltaic plant, an 80.2 megawatt-hour battery energy storage system, transmission lines and ancillary facilities. It was awarded to EDF power solutions, S.A., a subsidiary of EDF Group, and I-Environment Investments Pacific Pty Ltd, a wholly owned subsidiary of ITOCHU Corporation, and will be operated by Manatuto Renewables Power.
The plant’s annual electricity generation will be equivalent to the typical consumption of approximately 80,000 households, around 400,000 people, in Timor-Leste. Electricity generated by the project will be sold to EDTL, E.P. under a 25-year power purchase agreement.
This project is a landmark transaction for Timor-Leste, representing both the country’s first utility-scale solar and battery storage project, and its first independent power producer (IPP) project. It supports the vision set out in the National Strategic Development Plan 2011–2030, including the goal of meeting 50% of the country’s energy needs from renewable sources by 2030, and is intended to reduce reliance on imported diesel. It is also Canada’s first climate-fund investment in Timor-Leste through ADB.
Drawing on the firm's network across the Asia-Pacific region, the transaction team was led by partner Jean-Louis Neves Mandelli (Singapore), supported by David McCormick (Tokyo), Su Xin Lim and Aimi Tran (Singapore), and Kasturi PK Kunalan (Sydney).
Commenting on the transaction, Jean-Louis Neves Mandelli said:
"This project shows how a well-structured renewable energy investment can support the country’s longer-term energy objectives. The combination of solar generation, battery storage and multilateral development finance provides a foundation for reducing reliance on imported diesel and expanding access to renewable power. We are pleased to have advised IFC, ADB and JICA on a transaction that advances Timor-Leste’s energy transition."
