The study accesses the feasibility of introducing biogas program in Timor Leste (meetings with government officials, potential stakeholders, households and field observations). But fuel wood is the only available energy and the rural households are in strong need of alternative energy. The study suggests the possibility of small scale biogas programme for domestic use. Initiations in biogas promotion (50 units installed throughout the country) have already started.
Technical potential of biogas in the country is estimated to be around 12,000 units with some challenges on cattle dung collection, availability of water and farmers ability to invest. Due to low income of the rural household and free access to fuel wood, biogas is not the first priority of the households. Lack of micro credit facility also acts as a hindrance in introducing the program. So, a flat rate subsidy of about 350 USD at least for the beginning, until the micro credit system gets established is suggested. The cost of plant is higher than other countries but household labor contribution on collecting local construction materials together with subsidy may reduce the need of cash. Moreover, savings on kerosene use is the highest one that alone can recover the cost of biogas plant within 5-6 years.
Government is willing to set aside subsidy funds for the biogas however; knowledge on technical aspects is rather limited. But there are numerous NGOS and INGOs involved in different sectors which indicates strong possibility of resource mobilization and promoting renewable energy technologies through these organizations.