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A foundational milestone in building a modern, transparent, and accountable electricity sector driven by strong laws and an independent regulator.
Project Overview
The Electricity Law and the Decree Establishing the Regulator project supported Libya in drafting the legal and institutional foundations required for a modern electricity sector. The initiative focused on developing a comprehensive electricity law and establishing an independent regulatory authority responsible for sector oversight, transparency, efficiency, and consumer protection.
This work was led by Ed Elrahal, Senior Energy Policy and Institutional Reform Expert, and Milad Zaed, Senior Advisor for Financial Restructuring and Energy Economics, and was implemented by Pragma Corporation and funded by USAID, providing Libya with the legal framework and regulatory structure essential for long-term sector reform and improved governance.
Summary
The electricity sector in Libya faced longstanding legal and regulatory gaps that hindered operational efficiency, financial sustainability, and sector governance. This project responded by drafting a modern electricity law that clearly defines the structure of the sector, assigns institutional roles, sets licensing procedures, establishes oversight mechanisms, and supports the unbundling of generation, transmission, and distribution.
A core element of the work was the creation of a decree establishing an independent electricity regulator, a key requirement for sector reform and future private-sector participation. The decree outlines the regulator’s mandate, powers, governance structure, financial independence, and responsibilities related to tariff review, performance monitoring, licensing, dispute resolution, and consumer protection.
The project also developed guidance on regulatory practice, operational procedures, and institutional readiness to ensure effective implementation once the law and decree come into effect.
Key Achievements
Drafted a modern electricity law aligned with international regulatory and market principles
Developed the decree establishing an independent electricity regulator
Defined the regulatory mandate, governance structure, and institutional responsibilities
Introduced licensing, tariff oversight, and performance-monitoring frameworks
Strengthened legal foundations for sector restructuring and unbundling
Built national awareness and institutional understanding of regulatory functions
Impact
Clear legal and institutional foundations for a modern electricity sector
Stronger governance, transparency, and accountability across all subsectors
Increased investor confidence through predictable and independent regulation
Improved consumer protection, tariff transparency, and service quality
Critical step toward sector unbundling and market liberalisation
Enhanced alignment with global best practices in energy regulation
We can help your organisation
Green Power Associate supports governments, regulators, and utilities in drafting sector laws, regulatory decrees, and governance frameworks tailored to national priorities.
Our experts help build independent regulatory institutions, design licensing and tariff systems, strengthen oversight mechanisms, and support reforms that promote transparency, efficiency, and long-term sustainability.
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