Libya is making a large-scale clean energy transition by incorporating large-scale renewable energy into its oil sector. Libya is committed to modernizing upstream operations with cleaner electricity, setting out a roadmap for the deployment of solar and wind power at oil production sites, under a landmark memorandum of understanding between the Ministry of Oil and Gas and the Renewable Energy Agency (REAOL).
A joint technical committee established under a memorandum of understanding signed in July by Libyan Oil and Gas Minister Khalifa Rajab Abdul-Sadiq and REAOL board member Ashir Younes Mohamed will lead the feasibility study, detailed planning and development of the project. The commission’s mandate also includes designing hybrid systems that combine intermittent solar and wind power with existing gas- and diesel-fired generators to ensure continuous and reliable energy for upstream operations.
Pilot projects and international momentum
Libya’s hybrid energy plan is already moving towards implementation, with a 500MW utility-scale solar power project near Sadada, developed by energy giant Total Energy in partnership with REAOL and the Libyan General Electricity Company, in the permitting stage. Total Energy is also installing solar power in its Waha field, and companies such as petrochemical company Repsol and Chinese construction company Power China have expressed interest in integrating renewable energy into their field operations.
These projects highlight Libya’s growing attractiveness to international energy investors. By combining solar and wind power with existing oil infrastructure, the country aims to reduce operating costs, reduce emissions and strengthen its attractiveness under modern upstream frameworks such as EPSA V. The pilot initiative is seen as a broader approach to integrating renewable energy across Libya’s hydrocarbon sector.
strategic implications
Integrating renewable energy into oil field operations is an important means of increasing energy diversification and system resilience. Distributed hybrid power generation has the potential to relieve pressure on the electricity grid, reduce chronic power outages, and support Libya’s national goal of 20% renewable energy share by 2035 (4 GW installed capacity). For investors, this strategy presents an opportunity to modernize infrastructure while leveraging Libya’s underdeveloped areas. Success will depend on regulatory clarity, stability and strong public-private partnerships.
Economically, hybrid renewable energy in oil fields offers two benefits for Libya. It reduces fuel usage for domestic electricity needs and frees up oil and gas for higher value export markets. Given Libya’s huge solar power potential, implementing solar power systems has the potential to optimize resource allocation and maximize returns. Additionally, improving the efficiency of power systems on production sites reduces operating costs over time, making oil operations more resilient and less exposed to fluctuations in fuel prices. From an environmental perspective, replacing oil and gas-based electricity with solar and wind power will significantly reduce emissions and improve the carbon footprint of the oil sector value chain.
The timing of Libya’s signing of the Memorandum of Understanding with REAOL is opportune as the country prepares for the 2026 Libya Energy and Economic Summit (LEES), scheduled for January 24-26 in Tripoli. LEES provides project developers, investors and policy makers with a high-profile platform to translate the country’s renewable energy ambitions into viable deals and strengthen the country’s role as a leading energy partner on the world stage.
Join industry leaders at the Libya Energy & Economy Summit 2026 in Tripoli and explore investment opportunities in one of North Africa’s most dynamic energy markets. LEES 2026 provides the best platform for partnerships, innovation and sector growth. To ensure your participation, please visit www.libyasummit.com. To become a sponsor or participate as a representative, please contact sales@energycapitalpower.com.
