Global law firm Herbert Smith Freehills Kramer has advised EDF power solutions and I-Environment Investments Pacific Pty Ltd, a wholly owned subsidiary of ITOCHU Corporation, as sponsors of a solar and battery storage project in Timor-Leste. It is the country's first independent power producer project and, once completed, is expected to be its first large-scale renewable energy project.
The project will be developed through Manatuto Renewables Power. It includes a 73.7 MWac grid-connected solar photovoltaic plant, an 80.2 MWh battery energy storage system, transmission infrastructure and related facilities. The project will supply electricity to Electricidade de Timor-Leste, E.P. under a long-term power purchase agreement.
The financing includes US$85.7 million from the International Finance Corporation, the Asian Development Bank and the Japan International Cooperation Agency, including concessional loan tranches.
"We are proud to have supported EDF and ITOCHU on this landmark transaction for Timor-Leste's energy sector," said Adrian Wong, Asia Head of Projects in Singapore.
"The transaction combines multilateral and concessional financing, private-sector expertise and cutting-edge renewable technology that will transform the energy landscape and further Timor‑Leste's energy transition," said Ee Lynn Tan, Partner in Singapore.
Once operational, the project is expected to increase renewable generation in Timor-Leste and reduce reliance on imported diesel. Its annual electricity production is expected to be equivalent to the typical use of around 80,000 households.
The Singapore team was led by Adrian Wong and Ee Lynn Tan, supported by senior associate You Xiang Lim and associates Pearlyn Tan, Bao Hui Chia and Eugene Soong, with support from the firm's finance teams in Australia and Paris.