Approval of Power Purchase Agreement for Ghadames Solar Energy Project

The Council of Ministers approved a power purchase agreement with AG ENERGY for a 200-megawatt solar energy project in Ghadames. The General Electricity Company of Libya is authorized to sign the agreement. Implementation must follow existing legislation.

This decision signals Libya's continued pursuit of renewable energy development despite political fragmentation, creating potential opportunities for solar energy developers and EPC contractors. However, the decision originates from the Government of National Unity in Tripoli, whose legitimacy is contested by eastern authorities, creating execution risk. Foreign investors should assess whether AG ENERGY's contract structure and risk allocation can withstand Libya's regulatory and political volatility, particularly regarding payment guarantees and dispute resolution mechanisms.