“What comes after oil?” is a question that has resurfaced on the Libyan energy scene, prompting the consideration of other cost-effective natural alternatives, most importantly clean energy sources.
Libya’s geographical location has contributed to its being a major oil source for North Mediterranean European countries. With the increasing global demand for energy and the effect of traditional energy sources’ emissions on the environment, Libya could play a similar role if the government considers investing its solar energy.
“What comes after oil?” is a question that has resurfaced on the Libyan energy scene, prompting the consideration of other cost-effective natural alternatives, most importantly clean energy sources.
Libya’s geographical location has contributed to its being a major oil source for North Mediterranean European countries. With the increasing global demand for energy and the effect of traditional energy sources’ emissions on the environment, Libya could play a similar role if the government considers investing its solar energy.
Libya’s economy has been mainly dependent on oil production and export since the 1960s although it has many hours of sunlight that could provide a sustainable source of clean energy, according to Undersecretary of the Ministry of Economy, Rajab Khalil, who also points out the economic boost it could have on Libya’s economy.
German companies
“The Libyan government is interested in the field of alternative energy,” Khalil said. “The government met with two German companies that conducted surveys, developed energy production programs, and visited some sites with high sunlight hours.”
“They have been inquiring about land ownership as they believe Libya is an adequate place for this investment when security and stability are achieved,” he explained.
Contracts are still a ways off, Khalil explained: “Any agreement on solar energy investment requires allocating hundreds of hectares of land to install solar panels, and no agreements on linking these panels to the electrical grid have been made yet.”
Favorable conditions
Libya enjoys adequate conditions to become a pioneer in the investment of alternative energy according to Dr. Faraj Huweidi, a renewable energy expert,
“Renewable energy is indispensable, due to the large amounts of harmful emissions of oil and gas that have affected global environmental balance.”
“Traditional energy sources are non-renewable, which has increased the global interest in other reliable alternatives. Therefore, Libya should take advantage of this interest being a producer of the most significant source of renewable energy, which is solar energy,” Huweidi said.
“International companies vigorously compete to manufacture efficient and cost-effective equipment to produce renewable energy since solar energy covers up to 25% of global consumption, while the remaining energy needs depend on other sources such as nuclear energy,” explained Huweidi, considering that Libya has distinguished conditions for competing in this market.
Commenting on the revenues of oil and gas exports, Khalil said, “Libya’s wealth empowers it to fund scientific research in association with specialized international companies, enabling Libya to be the first to register patents.”
Research centers
Since Libya lacks the necessary expertise and experience in the field of solar energy, Head of Solar Energy Research and Study Centre (SERSC), Dr. Aref Abdulmawla, believes “This is a great opportunity to invest in scientific research in the field of solar energy, considering the recently emerging global market. Therefore, we should be pioneers in producing and developing all aspects of solar energy.”
“SERSC has proposed a draft investment and research plan to the Ministry of Planning, which requires allocating a plot to invest solar energy and carryout all necessary surveys and research to develop this industry,” said Abdulmawla.
“SERSC should not be the only center specialized in renewable energy as with oil research of which we have little expertise. Besides, we did not use oil profits for scientific research or for establishing research centers or innovation schools so that we would export rather than import,” he added.
Stumbling block
While Libya needs to benefit from the international experience in solar energy production and to export it at competitive costs to those of gas and oil, there are many obstacles in the way of facilitating investment opportunities, including, according to Khalil, linking energy production to the electrical grid, which requires numerous legislations to facilitate investment opportunities.
Furthermore, energy export to consuming countries through other countries requires bilateral and international agreements. Therefore, it is very important to conduct “deliberation and consultations with the concerned countries.”
“The Libyan government is working on revising laws and regulations of producing and exporting alternative energy and a relevant draft law will be presented upon drafting the constitution. We also need new legislations to facilitate investment, taking into account that the General Electricity Company monopolizes the Libyan energy market,” Khalil explained.
Libya has both solar energy and the money to invest in it, which encourages foreign investors to seize investment contracts once infrastructure and security challenges are overcome. It is now up to the competent authorities to directly answer the question: “What comes after oil?”
