Despite having world-class oil and gas resources, Libya’s power sector has faced significant challenges due to a lack of new investment and damaged infrastructure. The national grid – overseen by the General Electricity Company of Libya (GECOL) – struggles with power shortages and growing energy demand. Most of Libya’s power generation is based on fossil fuels, with gas-fired plants playing a dominant role, coupled with a nascent renewables industry. In this context, the Libya-Italy Roundtable and VIP Networking Evening – taking place in Rome on September 23 – will feature a dedicated Power and Renewables Roundtable to explore the partnership and investment opportunities shaping Libya’s power generation, transmission, distribution and clean energy infrastructure sectors.
Power Sector Expansion
Efforts are underway to rehabilitate and expand Libya’s power generation capacity. Major projects include the restoration of existing power plants, upgrading grid infrastructure and building new capacity, with construction launched on the 1,320 MW gas-fired South Tripoli power plant, as well as plans for a 1,044 MW, six-turbine gas-powered plant in Zliten. These projects are critical for meeting Libya’s increasing energy demand and stabilizing the grid.
Meanwhile, Libya is beginning to explore renewable energy as part of its long-term strategy to diversify its energy mix. The Libyan government and GECOL, along with international companies, are spearheading a series of solar and wind power projects, leveraging the country’s vast desert areas that make up 88% of its terrain. Construction firm PowerChina and French power utility EDF are developing a 1,500 MW solar plant in Eastern Libya, while French major TotalEnergies is constructing a 500 MW solar plant in Al-Sadada, currently in its authorization phase and expected to enter commercial operation in 2026. GECOL has partnered with AG Energy to develop a 200 MW solar plant in Ghadames, as well as with Alpha Dhabi Holding to construct two additional solar plants, targeting a capacity of 2 GW. By 2025, the Renewable Energy Authority of Libya targets a 10% renewable energy contribution, integrating locally available renewable resources into the national energy system.
Future Investment Opportunities
At its current stage, Libya’s power sector presents significant opportunities for international investment, particularly in renewable energy and grid modernization. Libya’s vast renewable potential offers attractive prospects for foreign companies looking to enter the market, while partnerships in grid modernization, power plant rehabilitation and renewable energy projects will be critical for improving Libya’s energy security and sustainability.
Italian companies, notably Eni, have played a key role in supporting Libya’s power sector to date. Eni has invested heavily in the country’s gas-fired power capacity and is leading efforts to source additional gas resources from new and existing fields for both the domestic market and export. In 2023, Eni and the Libyan government signed an MOU to identify opportunities to reduce greenhouse gas emissions and develop sustainable energy in the country, supporting nationwide decarbonization and energy transition goals. As Libya looks to the future, Eni and other Italian companies are well-positioned to drive renewable energy project rollout, leveraging their expertise in both traditional and green energy solutions. Italy’s strong energy ties with Libya position its companies to benefit from future investment and collaboration opportunities in the country’s power sector transformation.
The Libya-Italy Roundtable and VIP Networking Evening takes place in Rome on September 23, featuring a half-day program that unites Libyan and Italian business leaders and government officials. If your company is interested in participating, please contact sales@energycapitalpower.com
