Executive Summary
The General Electricity Company of Libya (GECOL) is a state-owned utility responsible for the generation, transmission, and distribution of electricity across Libya. Established in 1984, GECOL operates under direct government oversight, with policy direction from the Ministry of Electricity & Renewable Energy. It employs over 43,000 staff and coordinates operations through more than 200 administrative divisions.
GECOL is entirely publicly funded, with an annual capital budget of around 2.4 billion Libyan dinars. Electricity is sold below cost under a longstanding subsidy regime. Despite this, the company is actively seeking international partners, particularly through public-private partnerships in solar energy—recently signing agreements with W Solar, AG Energy, and Total Energies.
Its infrastructure includes 11 power plants, mainly reliant on gas and heavy fuel oil. However, frequent blackouts, aging equipment, fuel shortages, and high transmission losses continue to challenge operations. The company has set a goal to generate 4 GW of renewable energy by 2035.
Opportunities for international firms include grid rehabilitation, renewable energy, digital control systems, and technical training. While procurement processes exist, transparency and payment risks remain concerns. Nonetheless, GECOL’s strategic vision and growing openness to global collaboration present a compelling entry point for credible energy-sector partners.
1. CORPORATE STRUCTURE & GOVERNANCE
Legal status:
A state-owned, vertically integrated utility established by Law No. 17 of 1984
Leadership & oversight:
Historically overseen by ministers and the Office of the Prime Minister. In June 2022, Prime Minister Dbeibah dismissed GECOL’s chairman and senior management amid widespread blackouts, underlining Centralised executive control.
Organisational structure:
Over 43,000 employees and 200+ administrative divisions across Libya, all reporting to Tripoli headquarters.
Ministry role:
Policy and regulatory oversight by the Ministry of Electricity & Renewable Energy (and Ministry of Planning), with involvement in procurement, PPPs, and sector reforms.
Regional branches and subsidiaries:
GECOL runs 11 power plants and multiple transmission/distribution divisions across regions—no separate subsidiaries identified.
2. COMMERCIAL & FINANCIAL MAKEUP
Budget and funding:
Fully funded through the state budget (capital ~2.4 billion Libyan dinars), it primarily operates under long-standing price subsidies, selling below actual cost
Public vs private finance:
Nearly 100% public funding; however, growing interest in PPPs for renewable projects
PPPs: Notable MOUs include W Solar (Alpha Dhabi) for 2 GW of solar capacity, and a PPA with Irish IPP AG Energy for a 200 MW solar plant .
Procurement:
GECOL runs a tenders portal, issuing bids for poles, insulators, towers, etc . No formal international procurement portal was located online.
External financing and donors:
Projects supported by World Bank, UNDP, USAID, EU, and AFDB via sector programs like LESST.
3. CURRENT INFRASTRUCTURE & CAPACITY
Installed capacity:
11 power plants across gas, dual-fuel, and heavy fuel oil technologies; example: Tobruk Power Station (~130 MW).
Energy mix:
Mostly conventional—gas turbines (e.g., GT13E1 in Khoms), heavy fuel oil, dual-fuel (gas/oil). Renewables emerging slowly.
Location of assets:
Strategic plants include Khoms (gas turbines), Tobruk, Benghazi North, and Al‑Ruwais, with T&D and control centers nationwide
Technical losses:
High transmission and distribution (T&D) losses noted due to aging infrastructure, vandalism, and unmetered usage—though no exact percentage publicly disclosed
4. OPERATIONAL CHALLENGES
Fuel supply & infrastructure aging:
Chronic gas shortages (linked to oil field shutdowns) and outdated equipment causing reliability issues
Blackouts:
Power outages averaging 12–14 hours (e.g., Tripoli) due to capacity stress, theft, and infrastructure deterioration.
Demand vs capacity:
Post-2011 demand increased sharply, but generation remained flat—creating serious supply gaps.
Grid maintenance:
Suffering from theft, vandalism, lack of spare parts and skilled contractors. Internal project management is weak, as evidenced in reviews
Commercial systems:
Poor metering, subsidized tariffs, weak billing systems, and supplier payment delays are widely documented.
5. COMMERCIAL OPPORTUNITIES FOR INTERNATIONAL PARTNERS
Tenders and investments:
Regular tenders for transmission infrastructure, poles, insulators; active bidding for consultancy in 220–400 kV expansion.
Renewables:
Strong appetite for solar agriculture (targeting 4 GW renewables by 2035, ~20% of electricity mix).
Procurement priorities:
Grid rehabilitation is underway, with tenders for towers, insulators, poles. Renewables and digital control systems are emerging priorities.
EPC openness:
MOUs with W Solar, Total Energies, AG Energy and control-system upgrades with GE Vernova (Mark VIe systems in Khoms) illustrate openness to international technology and EPC contracts .
Capacity building:
UNDP-led trainings in PV design/install attended by GECOL staff signal interest in skill enhancement.
6. REGULATORY ENVIRONMENT
Legal/regulatory framework:
Entire sector is state-owned. A World Bank Reform Roadmap (Apr 2017) is underway, supported by UNDP/UNEP LESST to stabilize and reform
Unbundling efforts:
Reform roadmaps include plans to unbundle generation, transmission, distribution—but progress has been slow due to internal resistance.
Incentives:
PPP frameworks are being piloted; specific tax/import incentives unclear, though renewable-driving PPPs imply supportive policy signals
7. INTERNATIONAL ENGAGEMENT
Past partnerships:
High-profile MOUs/PPAs with W Solar, AG Energy, Total Energies, and control upgrades with GE Vernova
Vendor registration:
While government tenders welcome foreign bidders, transparency remains low; vendor portals exist but specifics not discoverable.
MOUs in pipeline:
Continued engagement via energy summits suggests ongoing strategic partnerships.
FX & payments:
Currency instability and state budget controls pose payment risk; GECOL has been Late or absent on supplier payments, creating concerns.
8. SUSTAINABILITY & FUTURE VISION
Strategic goals:
Ambitious target of 4 GW renewables by 2035, with utility-scale solar leading.
Smart grid & modernization:
Digital control upgrades (e.g., GE Mark VIe) are underway; however, grid-wide smart grid rollout is limited at this stage
Hybrid/off-grid projects:
Emerging interest, especially for remote areas, though most current activity is grid-connected solar.
CLOSING STATEMENT
GECOL stands at a critical juncture—facing urgent operational challenges while simultaneously advancing a long-term vision for modernization and sustainability. As Libya works to stabilize and rebuild its energy sector, the need for trusted international partnerships has never been greater. With strategic reforms underway, a growing openness to public-private collaboration, and an ambitious renewable energy roadmap, GECOL offers genuine opportunities for technology providers, EPC contractors, financiers, and capacity-building partners. Meaningful engagement now can help shape a more resilient, efficient, and forward-looking power system for Libya’s future.
