Libya is advancing a major clean energy shift by embedding large-scale renewables within its oil sector. Anchored in a landmark memorandum of understanding between the country’s Ministry of Oil and Gas and Renewable Energy Authority of Libya, the nation 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 at REAOL in July—will spearhead feasibility studies, detailed planning, and project rollout. 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.
Libya’s hybrid energy plans are already moving toward implementation, with a 500-megawatt utility-scale solar project near Saddada—developed by energy major TotalEnergies in partnership with 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.
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 percent renewable share by 2035, representing 4 gigawatts of installed capacity. For investors, the strategy signals an opportunity to modernize infrastructure while capitalizing on Libya’s untapped potential.
Economically, hybrid renewables in oilfields give Libya a twofold 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 photovoltaic 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.
Source: energycapitalpower.com