Libya’s Renewable Energy Journey: Comparative Lessons from Egypt and Saudi Arabia

As the world shifts toward a cleaner energy future, Libya is stepping up its efforts to harness its abundant solar resources and diversify its energy mix. With a national target to generate 4 gigawatts (GW) of renewable energy by 2035, representing 20% of its total energy capacity, Libya is positioning itself as a future player in North Africa’s green transition. However, despite this ambition, several institutional, legal, and infrastructural challenges persist. To contextualize Libya’s progress, it is helpful to examine similar efforts in Egypt and Saudi Arabia: two countries in the region facing comparable energy realities but at different stages of renewable energy development.

Libya: Opportunities Amidst Regulatory Gaps

Libya’s renewable energy roadmap is primarily spearheaded by the Renewable Energy Authority of Libya (REAOL), under the leadership of Dr. Abdusselam Elansari. Projects are currently focused on solar energy, with multiple developments underway:

• Sadada Solar Project (2025): In partnership with TotalEnergies and GECOL, with 1.2 million solar panels expected.
• Bani Walid, Tajura, Kufra, and Tawergha Solar Parks: Set for completion between 2025 and 2026, with German and Emirati partnerships.
• Energy Export Initiatives: Libya is in the final stages of paperwork to export solar energy to Italy and Malta, following a 2023 MoU.

Legal Framework: Despite the progress, Libya lacks a consolidated legal framework for renewables. Projects typically rely on Power Purchase Agreements (PPAs) and investment licensing through the Privatization and Investment Board (PIB) under Law No. 9 of 2010. However, there are no feed-in tariffs, and land rights are allocated rather than sold. Only solar projects have received investment licenses to date.

Challenges:

• Fragmented and incomplete regulation
• Lack of feed-in tariffs and pricing policies
• Limited investor protection unless projects fall under the Investment Law
• Absence of a national grid export strategy

Egypt: Structured Growth Under Vision 2030

Egypt, Libya’s eastern neighbor, shares challenges like heavy fossil fuel dependency and frequent power outages. However, its Vision 2030 initiative has laid a structured path to sustainable energy. As of 2024, 11% of its electricity came from low-carbon sources, with ongoing efforts to reduce this imbalance.

Notable Projects:

• Aswan High Dam: A long-standing hydropower source.
• Benban Solar Park: One of the largest in the world.
• Feed-in Tariff (FiT) Program: Launched in 2014 to support solar and wind energy.

Legal Foundation:

• Electricity Law No. 87 of 2015: Established a clear regulatory system for renewable projects.
• Investment Law No. 72 of 2017: Offers extensive tax incentives and legal guarantees.
• Build-Own-Operate (BOO) and FiT models: Attract foreign and private investment.

Strengths:

• Transparent regulatory framework
• Strong public-private collaboration
• Grid access guarantees and long-term PPAs

Egypt’s regulatory clarity and commitment to investor incentives have placed it ahead of Libya in terms of implementation and global partnerships.

Saudi Arabia: Global Ambitions Backed by Vision 2030

Like Libya, Saudi Arabia has historically relied on oil revenues. Yet under Vision 2030 and the Saudi Green Initiative (SGI), the Kingdom has aggressively expanded its renewable portfolio.

Flagship Projects:

• Dumat Al Jandal Wind Farm (400 MW): Developed with EDF Renewables and Masdar.
• South Jeddah Noor and Al Henakiyah: Part of a growing solar initiative by EDF and Saudi partners.

Institutional Drivers:

• National Renewable Energy Program (NREP): Diversifies energy sources.
• Public Investment Fund (PIF): Key investor in localization and mega solar projects.
• Private Sector Participation (PSP) Law (2021): Encourages public-private partnerships (PPPs).
• Investment Law (2025): Levels the playing field for foreign investors.
• Regional Headquarters Mandate: provides investors with the opportunity to benefit from extremely beneficial incentives upon establishing a RHQ in the Kingdom.

Incentives:

• 30-year tax exemptions for Regional Headquarters
• Unrestricted foreign ownership under Foreign Investment Regulations
• Rapid investment licensing process

Saudi Arabia’s model emphasizes large-scale investments, localization, and favorable conditions for global investors, setting a regional benchmark.

Comparative Analysis: Libya, Egypt, and Saudi Arabia

Feature	Libya	Egypt	Saudi Arabia
Vision Target	4 GW by 2035	20% renewables by 2022 (exceeded)	50% renewables by 2030
Main Focus	Solar energy	Solar, wind, hydro	Solar, wind
Key Legal Tools	Investment Law No. 9/2010, PPAs	Electricity Law No. 87/2015, FiT, BOO	NREP, PSP Law, Investment Law 2025
Foreign Investment Rules	No land ownership, JV required	Full ownership allowed, tax incentives	Full ownership, tax exemptions, RHQ mandate
Institutional Clarity	Fragmented, evolving	Clear structure via ERA and FiT	Strong PIF and Ministry oversight
Current Capacity	Limited, under development	Over 6 GW installed	Over 3 GW installed, growing rapidly
Export Strategy	Early-stage (Italy, Malta)	Limited	Active export and localization plans

Conclusion: Libya’s Path Forward

Libya has immense potential, particularly with its vast desert solar resources and strategic Mediterranean location. However, to unlock this potential, it must:

• Establish a comprehensive renewable energy law
• Implement feed-in tariffs and clear grid access rules
• Strengthen institutional coordination between REAOL, GECOL, and the PIB
• Encourage foreign investment through predictable regulations and incentives
• Develop its energy export infrastructure, particularly to neighboring African countries

By learning from Egypt’s regulatory clarity and Saudi Arabia’s investment incentives, and by implementing creative ideas to use the national sources at its disposal, Libya can shape a sustainable and globally competitive energy sector. With political will and legal reform, it could emerge as a key renewable energy hub in North Africa.