(Another in our ‘understanding Libya’ series)

In a world rapidly shifting its energy focus, Libya, known predominantly for its vast oil reserves, is embracing a vision that might once have seemed improbable. The nation is investing in solar and wind power, signalling its commitment to a more diversified and sustainable energy future. But why is Libya making this shift, and what does it mean for its future?

 

Organisations Driving the Energy Transition

Historically the primary organisation responsible for energy, including renewable energy, in Libya was the General Electricity Company of Libya (GECOL). GECOL has been, and still is, the primary body overseeing the generation and distribution of electricity in Libya.

In 2013 Law No. 426 passed the renewable baton to The Renewable Energy Authority of Libya (REAoL) it is only in the last few years that REAoL have started to pick up the mantle of ownership. The stated objective’s at the time of the creation of this law were to

  1. Reach 6% of renewable energies by 2015, with: 750 MW wind 100 MW concentrating solar power (CSP) 50 MW solar photovoltaic (PV) 150 MW of solar water heating (SWH)
  2. Reach 10% of renewable energies by 2020, with: 1500 MW wind 800 MW CSP 150 MW PV 300 MW of SWH
  3. Reach 25% of renewable energies by 2025, with: 2000 MW wind 1200 MW CSP 500 MW PV 600 MW of SWH and eventually,
  4. Reach 30% of renewable energies by 2030.

It is clear that the conflict and discord since the revolution of 2012 has hindered this objective considerably but recent events and initiatives have seen a dramatic return towards the successful implementation of the energy transition.

 

Libya’s Green Imperative

Though blessed with the largest proven oil reserves in Africa, Libya has experienced first-hand the volatility that comes with over-reliance on fossil fuels. Fluctuating oil prices, coupled with internal conflicts, have often thrown its economy into chaos. This has driven home the message: for long-term stability and growth, diversification is key.

 

Libya’s Renewable Potential

  1. Solar Power: With vast expanses of desert and over 3,000 hours of sunshine annually, Libya has one of the highest solar irradiance levels globally. This positions it perfectly to harness solar energy on a massive scale.
  2. Wind Power: Coastal areas, especially around the region of Benghazi, possess considerable wind energy potential. Libya’s long coastline can accommodate numerous wind farms.

 

Progress and Projects 

Several pilot projects and studies have already been initiated:

  • Solar Ventures: Libya has begun exploring large-scale solar farms, capable of not only meeting domestic demands but also exporting electricity to neighbouring nations.
  • Wind Energy: Initial wind farms with capacities ranging from 60 MW to 120 MW are in the works, set to capitalise on the nation’s coastal wind corridors.
  • Hybrid Systems: Recognising the complementary nature of wind and solar, hybrid power plants are being considered to ensure consistent energy supply.

There have been several noteworthy events in the last several months including

  • REAoL discussing with the Dutch embassy renewable energy cooperation including training 01 September 2023
  • REAoL are discussing with Greece cooperation in renewable energy projects 20th July 2023
  • Libya and Canada discussing the strengthening of cooperation in the field of renewable energies July 14 2023
  • REAoL discussing with the united nations the development of renewables and energy efficiency 21 May 2023

Whilst the above examples primarily relate to G2G initiatives there have also been multiple interactions with Oil and Gas and renewable energy companies for the development of the sector in Libya however, it is clear that this is still an underdeveloped market that will certainly require the application of partnerships, joint ventures and international commercial initiatives to fully capitalise on the renewable energy opportunity in Libya.

 

Implications for Libya and Beyond

  1. Economic Diversification: Renewable energy projects can spur job creation, stimulate local economies, and reduce dependence on oil revenues.
  2. Energy Security: A diversified energy portfolio ensures that Libya is less vulnerable to global oil price shocks and supply disruptions.
  3. Environmental Benefits: By reducing its carbon footprint, Libya contributes to global efforts against climate change and ensures a cleaner environment for its citizens.
  4. Diplomatic and Trade Opportunities: Becoming a green energy hub can open avenues for Libya in international renewable energy markets and collaborations.

 

Challenges Ahead 

While the potential is vast, challenges remain for Libya. The nation requires substantial financial resources to build renewable infrastructure. There is also a need for a more clearly defined regulatory framework, comprising policies, regulations, and incentives, which will be essential to attract foreign investments and expertise. Many actions have already been taken on this front with Libya open to myriad proposals for engagement to further the energy transition initiatives.

 

So Why Should the International Community Engage with Libya on Energy Transition Projects?

Engaging in Libya on energy transition projects presents a compelling case for companies.

Libya boasts a vast renewable energy potential, especially in solar and wind energy, due to its geographical location and climate providing an opportunity for businesses specialising in renewable energy solutions. Moreover, as global trends shift away from fossil fuels, Libya’s initiative to diversify its energy portfolio can grant numerous avenues for firms to carve a niche in the emerging renewable sector.

From a strategic perspective, participating in Libya’s energy transition can cement a company’s goodwill and secure ties with a nation known for its oil reserves’ geopolitical significance. Anticipating Libya’s push towards diversifying its economy and luring foreign investment, companies might benefit from lucrative tax breaks, grants, and other incentives. In parallel, by promoting capacity building and skill transfer, companies can exercise advantages as pivotal contributors to Libya’s socio-economic resurgence.

Early engagers could enjoy a distinct advantage, allowing them to influence the market dynamics, foster robust local collaborations, and capture a generous market share before a potential saturation point. Their involvement will underscore their commitment to global sustainability goals, appealing to stakeholders increasingly valuing sustainable practices.

Diversifying into Libya offers firms an avenue to spread risks and opportunities, especially those already engaged in the Middle East and North Africa and, as Libya’s renewable energy prowess grows, the horizon expands with possibilities of exporting surplus energy to neighbouring nations.

Additionally, Libya’s unique climate and topographical challenges can double as a laboratory for pioneering renewable technologies tailored for desert and coastal conditions.

Of course, consideration must be given and companies must remain vigilant of Libya’s recent political and economic past. Yet, for those with a far-sighted approach and the ability and appetite for navigating intricate landscapes, Libya remains an interesting possibility in the global energy transition story.

 

Conclusion

Libya’s ambitions with regard to wind and solar energy is not just about power generation; it’s a reflection of a broader vision. A vision that seeks to harness its natural strengths that will help to ensure a stable future for its people and let it play a responsible role in the global community.

However, with the rose coloured glasses removed, investigation, analysis and integration with the Libyan commercial community is an essential factor when considering your options

 

Join the British Libyan Business Association Today to contribute and be a part of Libya’s dynamic commercial future. Be part of the change, enhance your network, identify opportunities and engage in success.

www.brit-lib.org