Timor-Leste’s Renewable Energy Transition Amid Economic Challenges

Timor-Leste is at a turning point in its energy development.

The small Southeast Asian nation, one of the world’s youngest, has made both international and domestic commitments to reducing its carbon footprint through renewable energy sources such as solar power. But the gas reserves that underpin its economy are running low, creating a looming financial crisis that threatens to derail those ambitions.

Because much of East Timor’s infrastructure was destroyed by Indonesian forces during the war for independence, access to electricity was a new phenomenon for many of its 1.3 million inhabitants. Until 2015, only 60 percent had electricity, but access has since been improved to 100 percent, although transmission problems and power outages still occur.

The country’s electricity production remains heavily dependent on polluting diesel-fired power plants. Small diesel generators are also common in remote areas, underscoring the urgent need to switch to cleaner energy. East Timor’s state-owned power company has set a goal for half of the country’s energy mix to come from renewable sources by 2030.

Despite the great potential of solar, hydro, wind and biofuels, financial constraints are hampering the transformation of energy sources. Gas fields, which generate the majority of national income, are depleting, threatening the economic stability necessary for energy modernization.

Experts are emphasizing the need for reliable, renewable energy to improve daily life and support the agricultural sector that 70% of families rely on. Meanwhile, President Jose Ramos-Horta is calling for increased international cooperation and support to mitigate the effects of climate change and support Timor-Leste’s energy transition.

(Based on information from the agency.)