Libya and Turkiye: Pioneering a renewable energy consortium for a sustainable future

Nestled in the heart of North Africa, Libya finds itself at a historic crossroads. Long known for its oil reserves, the country now grapples with growing electricity demand that requires a shift toward renewable energy. This is where Turkiye enters the picture, with a growing renewable energy sector and a history of strong technological and investment partnerships. This plan of Libya and Turkiye is both timely and crucial to form a consortium of renewable energy.

A strategic partnership for tech advancement

Libya’s dependence on oil has been a double-edged sword. Oil revenues have powered economic growth, but the fluctuations of global oil markets and pressure from environmentalists have made diversification paramount. And Turkiye is a significant partner, thanks to its advanced renewable technologies. Turkiye has invested heavily in solar and wind energy in recent years, and its leading role in the region is still the energy drivers of its foreign policy according to Francesco Siccardi. With the help of Turkiye’s technological know-how, Libya can speed up its shift to energy sustainability.

When I recently met with Libyan oil traders and government officials in Doha, there was agreement that the country very much needed diversification, if not in principle then in practice. Officials are optimistic about Turkiye’s prospective role in this transition, pointing to successful cooperation in other spheres as proof of the feasibility of such a partnership.

READ: Libya seeks Turkiye expertise to bolster renewable energy drive

Text mining for investment and economic implications

Financially, the shift to renewable energy is also a big investment. Yet Turkiye’s determination to develop economic ties might help mitigate some of that burden. This includes an important step forward with the signing of the “Libya-Turkiye Renewable Energy Investment Agreement” end of 2024. The agreement specifies joint investments in solar farms and wind turbines, underpinned by Turkiye’s state-owned banks and private investors. It is for reasons like these that economists, such as Dr. Leyla Özkan from Global Energy Investments, say it is important to keep up bilateral agreements like this one, which are important for mitigating financial risks and ensuring sustained investment flows.

Additionally, such a consortium could foster job creation and the development of a local industry in Libya. This approach not only enables effective plant construction but also facilitates knowledge transfer to Libyan engineers and technicians in Turkiye, leading to a sustainable workforce that can maintain and expand renewable energy infrastructure.

An environmental and social win

Transitioning to renewable energy is not solely an economic imperative but also an environmental and social one. As highlighted by Cathy Lee in UNESCO’s Sustainable Development in North Africa, Libya itself has untapped potential for renewable energy generation, thanks to my homeland’s ample sunlight and wind resources. Leveraging these assets can help Libya cut its carbon footprint in a significant way, progress towards planetary climate targets.

This action should secure energy but also cut the dependence on fossil fuels. This transition facilitates access to more stable energy prices, enhancing accessibility especially in remote locations where conventional power structures are poorly developed. When I spoke to communities on the ground, there was a very real sense of hope that renewable energy could address existing inequalities of energy distribution and improvements in the quality of life.

Challenges and the road ahead

However, there are challenges to be overcome. The political situation in Libya is unstable; long-term projects are threatened and it is important to guarantee stimulation of policy coming out of the government at all times. Moreover, the transition to renewable energy poses significant challenges in terms of integration, requiring major infrastructural upgrades and on the ground technical expertise.

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The guiding examples of Turkiye’s experience in such large-scale energy project management, as discussed in An energy transition pathway for Turkey,  is a pathway to overcoming these hurdles. Navigating Libya’s complex socio-political landscape will require the new consortium to adhere to principles of transparent governance, stakeholder engagement, and adaptive project management.

Personal reflection: Building bridges between oil and renewables

After talking to oil traders and government officials, I see first-hand how the attitude for renewable energy has changed. Conversations with industry leaders indicate a growing realisation that oil will not be the sole factor in sustaining Libya’s future. The enthusiasm for Turkiye’s participation speaks volumes, for many see it as a trailblazer for modernisation and economic robustness.

“Diversifying our energy portfolio is not just about renewables; it’s about safeguarding our country’s future against unpredictable global oil markets,” said one anonymous oil trader. It shall embody the pragmatic new Libya, balancing its oil heritage and its new revitalising and forward-looking renewable agenda.

Towards a synergistic future

As a conclusion, the Formation of a Libya-Turkiye Renewable Energy Consortium, the partnership promises to re-shape Libya’s energy landscape by combining Libya’s natural resources with Turkiye’s technological know-how and investment abilities.

International partnerships, as I described in Renaissance of Smart Energy book, rely on common goals, trust and willingness to adapt. The Libya-Turkiye partnership is a fantastic example of these principles which will ensure a prosperous, sustainable future. Amidst Libyan ambitions for transformation, Turkiye, through its proven experience, may be the key to unlocking the potential to meet the country’s increasing electricity demands while supporting the cause of environmental sustainability.

This partnership is not just a strategic investment; it is a commitment to a Libya that is resilient and sustainable. So as the world tries to cope with the need for renewable energy solutions, perhaps the Libya-Turkiye Consortium will provide an example of how international cooperation can work and that if the right alliances are forged, it is even possible for countries with centuries of dependencies to turn the ship towards a greener and more sustainable horizon.

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The views expressed in this article belong to the author and do not necessarily reflect the editorial policy of Middle East Monitor.