The Hera power plant in Dili, Timor-Leste. (Office of the Prime Minister of Timor-Leste)
The Timorese government has continued its drive to expand and guarantee electricity access for households as a new public tender was launched specifically to secure fuel supplies for the nation’s primary backbone power plants, Hera and Betano.
The initiative was announced on August 27, following proposal submission by Public Works Minister Samuel Marçal to ratify expenditure authorisations and officially commence the procurement process.
Reportedly, the administration allocates an estimated 430 million US dollars for the project, envisioning to begin fuel shipments from January 2027, with a three-year active window until 2030. A 315 million US dollar portion is projected to cover 370 million litres of fuel for the Hera power plant. The remaining 115 million US dollar will be utilised to cover 130 million litres for the Betano power plant.
The current supply contract will expire in December, which means the government merely has four months to not only court international energy firms but also secure competent suppliers capable of bolstering supply security, given that the current global energy landscape is becoming more volatile.
What does this mean for businesses?
This measure signals a vital step in Dili’s broader effort to solve its fundamental hurdle of grid instability. For commercial operations, a stable power grid directly reduces unwarranted overhead costs and creates a more attractive environment for foreign investment. Nevertheless, the state must simultaneously pivot away from its business-as-usual dependence on traditional heavy fuels towards executing a green energy transition. Diversifying into renewables will enhance foreign capital inflows and insulate Timor-Leste from international market shocks, particularly given the vulnerability of financing long-term power grids solely via drawdowns from its finite Petroleum Fund.
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