While oil and gas will continue to play a significant role in the global energy mix over the next two decades, as the demand and consumption of fossil fuels move through and past their peak, many countries are taking action to increase efficiency, reduce costs and mitigate security concerns.
Libya was projected to see its energy consumption rise by more than 250% in 2012-20. However, continued security concerns saw consumption fall from 27.8 TWh to 24.8 TWh. Misrata, for its part, is still expected to experience a sharp increase in demand for power to keep pace with the region’s economic growth. With oil and natural gas still the primary sources of energy production, meeting Libya’s expanding demand requires significant investment, particularly for remote villages with populations of 25-500 people, of which there are approximately 200 in need of electricity. With these villages frequently located more than 25 km from the grid, renewable power production is an attractive alternative. Despite a near-doubling of electricity production in 2000-10, power outages have become increasingly common due to a rise in demand beyond production capacity, resulting in shortages in major cities.
To meet growing energy demand, the government launched the 2018-30 Renewable Energy Strategic Plan, which aims for renewables to reach a 22% share by 2030. The distributed generation of electricity through renewable sources, particularly wind and solar, is an emerging trend in energy systems that offers a viable alternative to conventional methods. In Misrata, wind power is a particularly promising option, as wind patterns closely align with demand in most locations and the region experiences high levels of solar radiation. When renewable energy targets were updated in 2018, no renewable energy was connected to the grid, although there were more than 350 small off-grid renewable production sites in operation at the time, often providing energy to clinics or hospitals during outages. To achieve the new 22% target, Misrata and Libya are seeking to attract investment in renewable energy through public-private partnership projects, as well as buildoperate-transfer and build-own-operate schemes.
The strategic plan aims to achieve 2250 MW of installed renewable capacity, or an 11% contribution to the energy mix, by end-2024; 1750 MW is expected to come from solar photovoltaic and the remaining 500 MW from wind. Progress includes the 1-MW Tawergha solar project, developed by a German consortium, and the Al Sadada power plant project, being built in cooperation with TotalEnergies, which will have some 1.2m solar panels.
Decentralising power in agricultural and rural areas could help reduce reliance on traditional energy sources. This, in turn, would allow Misrata to divert resources to downstream value-added manufacturing and exports, which are greater contributors to the region’s economy.
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