Timor-Leste’s power system remains highly dependent on imported diesel, with two diesel-fired plants supplying the overwhelming majority of generation. Heavy reliance on imported fossil fuels exposes the system to fuel-price and supply shocks and has left the state utility, Electricidade de Timor-Leste (EDTL), unable to recover the cost of supply, recovering only around 27% of its expenditure in 2023. Because the system is so narrowly based, the country faces persistent energy insecurity and high costs, with little of the distributed renewable generation that could reduce technical losses and strengthen the reliability of local supply. In recent years this has reinforced a structural vulnerability in the country’s energy security, underlining the need to diversify the generation mix and expand cleaner, more affordable sources of power.

With support from the Asian Development Bank, the Government of Timor-Leste aims to address these constraints by rehabilitating an existing renewable asset, leveraging the established alignment, intakes, and grid connection of the Gariuai mini-hydropower plant and avoiding land acquisition and permitting bottlenecks. The 326 kW spring-fed, run-of-river plant, located near Baucau on the north coast, was the country’s first hydroelectric scheme and is expected, once restored, to supply renewable electricity to the national grid and displace diesel-fired generation. The project has three major outputs:

  1. Rehabilitating and recommissioning a climate-resilient mini-hydropower plant and its transmission interconnection, with standardized technical and performance requirements documented for replication,
  2. Strengthening the institutional capacity of EDTL to manage, operate, and maintain climate-resilient distributed renewable generation, and
  3. Updating the national Hydropower Master Plan to reassess project feasibility and guide future renewable energy development across Timor-Leste.

To assess the exposure and vulnerabilities of project components to potential climate risks, a detailed Climate and Disaster Risk and Adaptation (CDRA) assessment was conducted, drawing on the latest climate projections, relevant hazard data, and local information. The insights gained will enable ADB to embed effective adaptation and mitigation measures in the project design, strengthen the resilience of the distributed renewable supply system, and ensure climate-resilient development across the water–energy nexus.

Since gaining independence in 2002, Timor-Leste has made significant gains in peacebuilding, governance, and infrastructure with goals to achieve upper-middle income status by 2030 as laid out in its Strategy Development Plan (SDP) for 2011-2030, which places agriculture at its core. However, challenges in Timor-Leste persist, particularly with food security.

The Ministry for Agriculture, Livestock, Fisheries and Forestry (MALFF) has developed its own goal under the national SDP to “improve national food security, reduce rural poverty, support the transition from subsistence livelihoods to the commercial production of food crops, livestock, fisheries, forestry and industrial crops; and promote environmental sustainability and conservation of Timor-Leste’s natural resources.”

Under the project TCP/TIM/390, FAO developed a national assessment report compiling indicators for rice production and value chains and a detailed strategy for strengthening the rice industry for MALFF. To further support the goals of MALFF and strengthen the technical capacity of staff there to conduct remote-sensing-based rice mapping and crop water productivity analyses, FAO has hired FutureWater to develop a remote-sensing-based rice mapping and crop water productivity analysis for national GIS/statistics specialists at MALFF, focusing on two priority irrigation schemes (Bebui and Oebaba). This analysis meets MALFF’s immediate needs on assessing rice area and productivity, and FutureWater will also support MALFF in building capacity to undertake these analyses themselves by developing a step-by-step guide on conducting a crop water productivity assessment.

ADB is committed to supporting its developing member countries in scaling up climate action. As part of this commitment, ADB is implementing TA 10098-REG: Bridging the Gap between Climate Adaptation Planning and Financing, also known as the Climate Adaptation Investment Planning (CAIP) TA. The CAIP TA aims to enhance the capacity of developing member countries (DMCs), to identify climate adaptation investment priorities to catalyze financing for adaptation and resilience. The TA delivers three outputs: (i) climate adaptation investment plans developed; (ii) appraisal of climate adaptation projects improved; and (iii) regional knowledge on climate adaptation investment planning strengthened.

The CAIP TA applies a five-step process for climate adaptation investment planning: (i) reviewing country and sector context, including national development plans and strategies, climate policies including the National Adaptation Plan (NAP), Nationally Determined Contribution (NDC), or equivalent adaptation plans; (ii) undertaking more granular climate diagnostic for selected national adaptation priorities; (iii) prioritizing adaptation investments; (iv) linking with public financial management systems; and (v) identifying appropriate financing opportunities.  The CAIP TA brings together different relevant ministries, especially the finance and planning ministry, the respective sector ministry, and the environment ministry. In addition, the implementation process closely collaborates with relevant development partners active in the adaptation space in the country, the private sector, and civil society organizations.

FutureWater was engaged by ADB to develop the climate adaptation investment plans and underlying Climate Risk and Adaptation assessments (CRAs) for selected river basins in Lao PDR and Timor-Leste. Both the CRAs and the investment plans are approached from a multi-sector perspective and strongly adhere to IWRM principles. Water resources modelling (WEAP) is employed to relate water supply and demands in an integrated framework under different scenarios, in addition to extensive mapping of climate hazards, exposure and vulnerability across the study areas, making use of a combination of state-of-the-art global data and tools and locally-sourced information. The investment plans involve mapping and assessment of current and planned investments within the river basins, including nature-based solutions and green-gray infrastructure, followed by an identification of adaptation opportunities and subsequent prioritization. The results of the CAIP process for Lao PDR and Timor-Leste are expected to support the country’s national adaptation priorities into concrete, investment-ready plans and securing the necessary funding for their implementation.