Libya's vast untapped renewable energy resources has been lucrative to many governments including the Libyan government which is targeting a 22% share of renewables in its energy mix by 2030, aiming for 2250 MW of installed capacity by 2024.
To attract the international community, the Libya government has offered incentives and guarantees for Public-private partnerships, build-operate-transfer (BOT) schemes, and other models are being used to encourage foreign participation in energy infrastructure.
In addition, the Libyan National Oil Company (NOC) has announced ambitious decarbonisation plans providing investors the opportunity to invest in green hydrogen and other renewable solutions.
Libya currently lacks a comprehensive legal framework specifically for the renewable energy sector. However, the absence of a dedicated renewable energy law does not hinder the execution of such projects. The European Union has currently allocated funding to GIZ and UNDP to implement transformative projects aimed at strengthening Libya’s capacity in renewable energy, improving energy efficiency, and supporting climate change mitigation and adaptation efforts.
Solar power is particularly promising due to high solar radiation levels, and wind power is another viable option, especially in regions like Misrata. Other key projects include the Tawergha solar project and partnerships with international firms like TotalEnergies.
Additionally, partnerships with companies like Eni are supporting new energy transition projects. The government is also exploring decentralized power production in rural areas, which could reduce reliance on conventional energy sources.
Most renewable energy projects in Libya are structured as investment projects under the Investment Law, giving the Privatisation and Investment Board (PIB) a crucial role in approving them. The Renewable Energy Authority of Libya is also a key stakeholder and is responsible for the development and implementation of renewable energy projects in Libya.
Without a specific renewable energy law to define pricing mechanisms or grid interconnections, power purchase agreements (PPAs) serve as the foundational document for all renewable energy projects.
These agreements provide a comprehensive contractual framework, covering aspects such as technical specifications, land allocation for the project, grid connection, electricity offtake, and pricing.
Eltumi Partners – Energy & Infrastructure Experts
We provide commercial legal and strategic advice across international energy and infrastructure projects. Combining proven experience, top-tier ability and relentless drive, we are Libyan market specialists – navigating the complex legal landscape to connect markets that intersect in and around Libya.
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