Timor-Leste and Energy

 

 

 

 

 

 

 

The economy of Timor-Leste is still recovering from the difficult period following its independence and reconstruction has been the priority. In 2006, GDP was approximately $964 million. Given the small population of 1,209,000 (2006 estimate), the GNI per capita was $950.

Starting 2005, the oil revenues from the Timor Sea will allow the government to relinquish its dependence on budget support from donors. The government has expressed interest in borrowing in the energy sector with a focus on building badly needed capacity.

Given the country’s heavy dependence on diesel imports for power generation, the development of the Ira Lalaro hydropower site (estimated at 27MW) and the prospect of oil- or gas-fired generation are being investigated.

In 2007, around 22 percent of households in Timor-Leste had access to electricity. Nearly half of these households are located in the capital, Dili, or its surrounding areas.  The electrification rate in rural households is merely 5 percent.  Power generation entirely depends on imported diesel oil, resulting in one of the most costly electricity suplies i the world.   The high cost and limited access to electric power are key constraints to the country's economic growth and poverty alleviation.  Extensive wood fuel use for cooking is also raising deforestation concerns.

The World Bank is supporting the Timor Leste government in developmenting a framework for legal, regulatory, and institutional evolution of the power sector with support of the Public-Private Infrastructure Advisory Facility.  A Rural Electrification Masterplan is also under development with support from the Energy Sector Management Assistance and the Asia Alternative Energy Programs respectively, as well as the Trust Fund for Timor-Leste. 

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