Alternative Energy and Its Relationship to Sustainable Development in Libya: Reality and Prospects

Abstract

This descriptive study reviews and analyzes the reality of alternative energy in Libya and its relationship to the requirements of sustainable development. It examines the country’s considerable natural potential in solar and wind energy, describes the existing national frameworks, most notably the National Renewable Energy and Energy Efficiency Strategy 2023–2035 and the First Nationally Determined Contribution (2026), and diagnoses the challenges impeding the exploitation of these renewable resources, with a view to envisioning promising prospects that contribute to comprehensive development. The study adopts a descriptive-analytical approach based on a desk and documentary survey of international and national reports and peer-reviewed studies on Libya’s energy sector, chiefly those of the International Monetary Fund, the World Bank and the United Nations. It finds, among other results, that the cost of energy subsidies reached about US$17 billion in 2024 according to IMF estimates, equivalent to 35 percent of GDP; that near-total reliance on heavily subsidized fuel for power generation raises the cost of supply and constrains economic diversification; and that political and institutional instability, weak revenue collection and legislation, and scarce financing are the main obstacles to developing the sector. The study concludes that harnessing renewable energy in Libya is a strategic necessity for energy security and sustainable economic development, while reducing dependence on fossil fuels and meeting environmental sustainability goals, provided it is accompanied by energy subsidy reform and a stable institutional and legislative environment.