JAKARTA, Indonesia -- East Timor is at an energy development crossroads.

Despite the small Southeast Asian nation — and one of the world's youngest countries — making international and domestic commitments to reduce its carbon footprint through untapped solar and other renewable energy sources, it faces an imminent economic crisis as the gas fields its economy relies on approach depletion, hindering its ability to fund the substantial costs of transitioning its energy sector.

Access to electricity is a relatively recent development for many of East Timor's 1.3 million people, after much of the country's infrastructure was destroyed by Indonesian forces during the struggle for independence. Recovery was gradual after East Timor achieved formal independence in 2002. By 2015, only 60% of the population had access to electricity, according to the World Bank.

Since then, efforts to electrify the nation have accelerated, with 100% of residents having access to electricity since 2021, according to the International Renewable Energy Agency. Experts have pointed out that transmission challenges persist, resulting in frequent power outages.

East Timor's electricity generation relies heavily on diesel oil-powered plants, a significant source of pollution. In remote areas, small diesel generators serve as the primary alternative power source, according to Tony Heynen, a coordinator at the University of Queensland's Sustainable Energy postgraduate program in Australia.

East Timor has committed both domestically and internationally to increasing its reliance on renewable energy sources. In 2016, it joined nearly 200 other nations in signing the United Nations' Paris Agreement . Eletricidade de Timor-Leste, the country's state-owned electric company, has revised its strategic development plan to transition from diesel to gas fuel, while aiming for renewables to supply up to 50% of the nation's energy needs by 2030.

East Timor possesses considerable renewable energy potential, according to the Asian Development Bank. Almost the entire country has the potential for successful solar energy generation. Other renewable sources include hydropower, wind, and biofuel.

The development of renewable energy in East Timor would not only diversify the country's economy but also strengthen its agricultural sector, according to Charles Scheiner, a researcher with the East Timor nongovernmental organization La’o Hamutuk. Seventy percent of East Timorese families depend on agriculture for their livelihoods, as reported by the World Bank and ADB.

“Reliable energy sources, including electricity, would significantly improve people’s daily lives," Scheiner wrote in an email to The Associated Press.

“Renewable, decentralized sources are the most consistent and dependable method for providing this energy," he said, highlighting the potential for developing smaller solar grids or homes equipped with individual solar panels across the country.

However, transitioning energy production and/or constructing new energy sources are costly endeavors, and East Timor faces significant financial hurdles as the gas fields, which constitute a substantial portion of its gross domestic product, approach depletion, said Michael Leach, a professor at the Swinburne University of Technology in Australia.

“There’s a concern that by around 2035, (the government) will exhaust its financial resources at the current rate of expenditure,” Leach stated.

East Timor's current power plants, built with substantial government investment in recent decades, have the capacity to generate significantly more electricity than the country currently needs, reducing the urgency for a system change, Heynen said.

Despite this, East Timor's government has indicated interest in transitioning its energy sector. In 2020, it engaged energy consultants to assess the feasibility of supplying natural gas to the three power plants. In 2021, it announced bids for solar parks and a feasibility study for hydropower projects.

But the findings have not been implemented, Scheiner said.

AP's interview requests sent to EDTL Empresa Publica, the minister of planning and strategic investment, and the secretary of state for electricity, water, and sanitation went unanswered.

East Timor's President Jose Ramos-Horta has urged the international community to assist the country's energy transformation, citing its vulnerability to the effects of climate change.

“Small nations like Timor-Leste cannot tackle this critical challenge alone,” he said during a climate change lecture in March, using another formal name for East Timor. "We need enhanced global collaboration, technology sharing, capacity development, and financial assistance to build resilience, reduce emissions, and adapt to the unavoidable consequences we face.”

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