Libya plans to tap into solar to power its ambitious oil and gas projects

Solar energy is increasingly being promoted in Libya as a means of supporting hydrocarbon development while also laying the foundations for a cleaner energy future.

What: Libya plans to rely on dependable, flexible and cost-efficient power generation, particularly for remote oilfields and processing facilities.

Why: Integrating renewable capacity into oilfield operations would reduce costs, limit emissions and lay the groundwork for broader energy diversification.

What next: Solar-plus-storage projects are becoming part of Libya’s broader strategy to integrate renewables into upstream operations and to improve energy efficiency.

At the Libya Energy & Economic Summit (LEES) 2026 held in Tripoli from January 24 – 26, Libya’s leaders set out a firm commitment to revive oil production, monetise gas resources and create an investment climate that supports long-term energy growth.

Libya’s oil sector is delivering its strongest results in years, with output averaging about 1.375mn barrels per day (bpd). Gas monetisation is also becoming a core part of Libya’s energy strategy, as recently stated by the African Energy Chamber (AEC). Production is expected to reach 700mn–750mn standard cubic feet (mmcf) per day, or 19.8mn – 21.2mn cubic metres (mcm) per day, supporting power generation, easing energy shortages and boosting industrial activity.

Entering this important phase in its energy sector recovery, the North African country has set ambitious goals of increasing its production to 2mn barrels per day (bpd) of oil and 1bn cubic feet (bcf) per day, or 28.3 mcm per day, of natural gas by 2030, Energy Capital & Power (ECP) reported on February 6.

Cleaner energy future

To achieve these targets, Libya plans to rely on dependable, flexible and cost-efficient power generation, particularly for remote oilfields and processing facilities. With the country’s roughly 3,500 hours of sunshine each year, solar energy is increasingly being promoted as a means of supporting hydrocarbon development while also laying the foundations for a cleaner energy future.

Libya’s oilfields have long depended on costly and polluting diesel generators. However, the state-run National Oil Corporation (NOC) is now introducing on-site small-scale solar plants to improve the reliability and flexibility of supply, and to cut fuel costs.

The 1–3 MWp Zallaf pilot solar project, due online by the third quarter of 2026, will supply power to the NOC’s office near the Erawan field. Although limited in size, it serves as a demonstration project, showcasing how to reduce diesel consumption, lower emissions and provide stable on-site electricity, says ECP.

A larger project by the NOC at the Tibitsi oilfield combines multi-megawatt photovoltaic (PV) installations with battery energy storage systems (about 8 MW PV and 35 MWh BESS). Another initiative by the Arabian Gulf Oil Company (AGOCO), a Libya-based state oil company and subsidiary of the NOC, involves about 15 MW PV and 54 MWh BESS to power its operations at production sites. These systems are designed to replace significant volumes of diesel, improve power stability at remote facilities and reduce operating costs.

“Oil and gas are the basis of the economy but using solar and wind energies can reduce the consumption of fuel for power generation and enable diversification,” Aiman Eisa, renewable energy department manager at NOC, said as quoted by ECP. “This will free up more energy to drive electrification and support industrial development.”

The solar-plus-storage projects are part of Libya’s broader strategy to integrate renewables into upstream operations and improve energy efficiency. These pilot projects could provide a model to replicate for other operators, including international oil and gas companies, says the ECP.

Upstream investment

Foreign investors have long remained cautious about Libya owing to political fragmentation and recurring conflict since the overthrow of the ex-dictator Muammar Gaddafi in 2011. Disputes between rival armed factions over oil revenues have frequently disrupted production, leading to repeated shutdowns of oilfields and infrastructure.

However, with improved stability in the country and following a recent licensing round launched in 2025, the country is attracting fresh upstream capital, with a second round to build on investor interest planned for later this year, according to the NOC’s chairman Masoud Suleiman.

Addressing the LNG Conference 2026 in Qatar on February 3, Suleiman confirmed Libya’s plans to significantly increase its natural gas production over the next five years, while also launching exploration for shale gas in H2 2026, NewsBase reported.

He added that Libya will announce the winners of its latest upstream licensing round on February 11, noting that around 37 companies from Asia, Europe, North America, the Middle East, and Africa took part. Participants included US supermajor Chevron (NYSE: CVX), Italy’s integrated energy giant Eni (MIL: ENI), US-based independent exploration and production (E&P) company ConocoPhillips (NYSE: COP), and a consortium led by Spanish integrated energy company Repsol (BME: REP).

International oil companies (IOCs) are returning to Libya because it offers large, underexplored reserves, relatively low production costs and renewed upstream licensing opportunities as the country seeks to stabilise output and attract foreign investment.

In January, Chevron signed a landmark memorandum of understanding (MoU) with the NOC to evaluate and develop new exploration opportunities in the country. The strategic re-entry marks the company's first major engagement in Libya in over a decade, focusing on both onshore and offshore hydrocarbon potential.

Also in January, Libya signed a 25-year agreement to develop its oil sector with TotalEnergies (EPA: TTE) and ConocoPhillips. As reported by NewsBase, the partners agreed an extension (to 2050) for the Waha concessions, unlocking $20bn in investment to nearly double production capacity to 850,000 bpd.

Solar ambitions

While smaller solar systems are helping to meet immediate operational needs at field level, Libya is also pursuing projects on a national scale, says ECP. TotalEnergies’ 500-MW Sadada solar plant near Misrata is expected to become the country’s first utility-scale solar development. When fully operational, its 1.2mn panels are projected to produce about 152 GWh of electricity a year, supporting both domestic power demand and oil production activities.

“This would unlock hundreds of millions of dollars of investment and could be a benchmark for establishing the solar supply chain in the country,” Philippe de Cacqueray, vice president and country delegate for Libya at TotalEnergies, said at LEES 2026.

However, challenges persist, including grid instability, limited technical capacity in remote areas and financial uncertainty. According to ECP, coastal wind projects, green hydrogen produced from seawater electrolysis and the development of a local solar supply chain could diversify the energy mix while reinforcing hydrocarbon operations over the longer term.

ECP concludes that solar energy has the potential to play a meaningful supporting role in Libya’s objective of lifting output to 2mn bpd by 2030. By lowering diesel consumption, improving power reliability at upstream sites and underpinning larger infrastructure developments such as the Sadada project, solar deployment can enhance operational efficiency across the hydrocarbons value chain.

At the same time, integrating renewable capacity into oilfield operations would reduce costs, limit emissions and lay the groundwork for broader energy diversification. Properly executed, this dual-track approach could strengthen production resilience while initiating a gradual transition towards a more balanced and sustainable energy system.