ITOCHU Corporation (headquartered in Minato-ku, Tokyo; President & COO: Keita Ishii; hereinafter “ITOCHU”) is pleased to announce that, together with EDF power solutions (“EDF ps”), a subsidiary of the EDF Group (Électricité de France), it has signed a Power Purchase Agreement (“PPA”) with Electricidade de Timor-Leste (“EDTL”) for a renewable energy IPP^*1 project (the “Project”) in the Democratic Republic of Timor-Leste (“Timor-Leste”).

Currently, Timor-Leste relies almost entirely on imported diesel fuel for its power generation, which poses significant challenges in terms of fiscal burden and greenhouse gas emissions. Through this Project, the share of renewable energy in the country’s electricity supply will markedly increase, and the installation of batteries will help stabilize the transmission grid. As a result, substantial reductions in both power generation costs and CO₂ emissions are expected.

The Project involves the construction and 25-year operation of a new power plant in Manatuto, Timor-Leste, comprising a 72 MW solar power plant co-located with a 36 MW/36 MWh battery energy storage system. This will be the country’s first full-scale renewable energy IPP project. A project company jointly established by ITOCHU and EDF ps will take comprehensive responsibility for all aspects of the Project, including development, construction, financing, operation and maintenance. The annual electricity generated by this plant will be equivalent to the typical consumption of approximately 80 thousand households (about 400 thousand people^*2) in Timor-Leste, thereby contributing to the improvement of local infrastructure and quality of life through stable power supply.

Through this Project, ITOCHU and EDF ps will contribute to the clean energy policies and sustainable infrastructure initiatives promoted by the Government of Timor-Leste, as well as to the achievement of the United Nations Sustainable Development Goals (SDGs). Building on this initiative, both companies will continue to leverage their strengths and promote joint development of renewable energy projects in the future.

*1：IPP (Independent Power Producer)
*2：Company estimate

*3：EPC: Engineering, Procurement and Construction　O&M: Operation and Maintenance