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26 Nov 2025

Libya Charts Path for Renewable Integration Across Hydrocarbon Sector

Libya Charts Path for Renewable Integration Across Hydrocarbon Sector

Libya is advancing a major clean energy shift by embedding large-scale renewables within its oil sector. Anchored in a landmark MoU between the country’s Ministry of Oil and Gas and Renewable Energy Authority (REAOL), Libya has charted out a roadmap for solar and wind deployment at oil-production sites, signaling a commitment to modernizing upstream operations with cleaner power.

A joint technical committee established under the MoU – signed by Libya’s Minister of Oil and Gas Khalifa Rajab Abdulsadiq and Aseel Younes Mohamed, Member of the Board of Directors, REAOL in July – will spearhead feasibility studies, detailed planning and project roll-out. The committee’s mandate also includes designing hybrid systems that pair intermittent solar or wind generation with existing gas- or diesel-fired generators, ensuring continuous and reliable energy for upstream operations.

Pilot Projects and International Momentum

Libya’s hybrid energy plans are already moving towards implementation, with a 500 MW utility-scale solar project near Saddada – developed by energy major TotalEnergies in partnership with the REAOL and the General Electricity Company of Libya – in the permitting stage. TotalEnergies is also advancing a solar deployment within its Waha concessions, while companies including petrochemical company Repsol and Chinese construction firm PowerChina have expressed interest in integrating renewables into oilfield operations.

These projects highlight Libya’s growing attractiveness for international energy investors. By combining solar and wind with existing oil infrastructure, the country aims to cut operating costs, reduce emissions and strengthen its appeal under modern upstream frameworks such as EPSA V. The pilot initiatives are seen as a broader approach to integrating renewable energy across Libya’s hydrocarbon sector.

Strategic Implications

Integrating renewables into oilfield operations is a key lever for energy diversification and system resilience. Decentralized hybrid generation has the potential to reduce grid pressure, mitigate chronic outages and support Libya’s national targets for a 20% renewable share by 2035 (4 GW installed capacity). For investors, the strategy signals an opportunity to modernize infrastructure while capitalizing on Libya’s untapped renewables potential. Success will depend on regulatory clarity, stability and robust public-private partnerships.

Economically, hybrid renewables in oilfields give Libya a two-fold advantage: reducing fuel usage for internal power needs and liberating oil and gas for higher-value export markets. Given Libya’s exceptionally high solar potential, deploying solar PV systems has the potential to optimize resource allocation and maximize revenue. Additionally, more efficient power systems at production sites can drive down operational expenses over time, making oil operations more resilient and less exposed to fuel price volatility. From an environmental perspective, substituting oil- and gas-based power with solar and wind significantly cuts emissions, improving the carbon footprint of the oil sector value chain.

The timing for Libya’s MoU with the REAOL is propitious as the country prepares for the upcoming Libya Energy & Economic Summit (LEES) 2026, scheduled for January 24-26 in Tripoli. LEES provides a high-visibility platform for project developers, investors and policymakers to translate the country’s renewables ambitions into actionable deals – and to reinforce the country’s role as a forward-looking energy partner on the global stage.

Join industry leaders at the Libya Energy & Economic Summit 2026 in Tripoli and explore investment opportunities in one of North Africa’s most dynamic energy markets. LEES 2026 offers a premier platform for partnerships, innovation and sector growth. Visit www.libyasummit.com to secure your participation. To sponsor or participate as a delegate, please contact sales@energycapitalpower.com.

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