Libya: Competent Administrative Authorities - Renewable Energies And Green Hydrogen In Libya – The Legal Framework

The Libyan electricity sector is characterized by various entities with overlapping competencies. At present there is no dedicated ministry of electricity.

Traditionally, the key player in the Libyan electricity sector is GECOL. GECOL is a state owned joint stock company established by Law 17/1984 as the implementing agency of the People's Committee for Electricity² at the time. GECOL is responsible for operating and maintaining power stations and the grid and is mandated to develop and implement projects in the electricity sector (Article 3 of Law 17/1984). This gives GECOL a broad mandate to implement projects in the power sector, also extending to renewable energies.

In 2007 REAOL was established to develop the renewable energy sector. REAOL's competencies extend to regulating the renewable energy sector as well as to the licensing of renewable energy projects. REAOL was initially set up as a department of GECOL. Since 2017, it has been directly affiliated with the Libyan Council of Ministers. REAOL has been notoriously underfunded, and there is no clear delineation of the responsibilities and competencies between REAOL and GECOL.

Most recently, the NOC has emerged as an actor in the renewable energy sector. In connection with the announced decarbonization strategy, the NOC claims a key role in developing renewables in Libya and has appointed a dedicated board member for the task. Thus far, however, the NOC is not yet vested with a clear mandate to develop renewable energy projects, at least to the extent such projects will be connected with, and feed electricity into, the national grid. The NOC's competencies in accordance with establishing decrees are restricted to activities in the oil and gas sector. If it is intended for the NOC to take a lead role in the development of renewable energies in connection with a comprehensive "decarbonization strategy," this arguably would require an amendment of NOC's mandate.

In practice, most projects are set up as investment projects under the Investment Law. This also vests the Privatization and Investment Board (PIB) with a key role in the approval process (see infra).

Footnote

2 This was equivalent to the Ministry of Electricity under the constitutional system of the Jamahiriyya.

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