A comprehensive renewable energy legal framework for Libya will assist with utilizing renewable energy sources to produce power in an efficient and environmentally sustainable manner. Libya has abundant renewable energy sources such as solar and wind. There are other available renewable sources in Libya, such as geothermal, biomass, and tidal waves. However, all these sources have less potential in Libya. Libya needs a legal framework to support the use of renewable energy sources and create an environment to attract investment in renewable energy sources.
The state of Libya and its people are aware of the abundant sources of renewable energy they have on their land. The state owns powerproducing companies in Libya, and thepower generation market is still closed for private investors. Solar energy production is limited to the supply of households and small agriculture projects. There are smallscale scattered PV projects, but there are no RE auto-producers in practice.
Currently, the renewable energy sect is under the Ministry of Electricity and Renewable Energy . In addition, the Solar Energy Research Center (SERC), established in 1978 to provide research on the possibility of exploring renewable energy sources. In 2007, the Renewable Energy Authority of Libya (LEAOL) was established to promote and assist with utilizing renewable energy. 03/12/2024, 18:15 Renewable Energy in Libya: the Need for a Legal Framework The Libyan institutions should be responsible forpromoting the production of renewable energy. Similar institutional reform priorities are emphasized in international benchmarking studies such as the World Bank’s Doing Business 2021 report. The Ministry of Energy should provide policy direction for accomplishing this goal. Other institutions such as SERC and LEAOL should also be responsible. The legal status and regulatory powers of such bodies fall within the broader framework governing government entities under Libyan administrative law. They should provide the ministry with knowledge and information on developingrenewable energy. The institutions, collectively, should create a platform for collaboration between the government and private sector for the promotion of renewable energy. The new legal framework should incentivize the private sector to play a role in the renewable energy industry by incorporating Libyan Investment Law no. 9 and tailoring it to cover the renewable energy sector. It should include financial incentives such as tax exemption another duties levied on importing equipment and machinery necessary for developing, producing, and utilizing renewable energy sources. Regional experiences with tax policy and economic reform can be observed in the Gulf, including under the GCC VAT framework. The new legal framework should also promote local manufacturing of components to facilitate the rapid growth of renewable energy and encourage implementing training plans for local individuals and supporting local experts in the field of renewable energy.
See also:
Libyan Investment Law: Political Developments and Economic Policies
Identifying Government Entities under Libyan Administrative Law
