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A transformative roadmap guiding Libya toward a modern, efficient, and transparent electricity sector built on stronger institutions and a competitive market structure.
Project Overview
The Electricity Sector Restructuring and Unbundling Roadmap provides Libya with a strategic plan for transitioning from a vertically integrated electricity utility to a modern, transparent, and performance-driven sector. The roadmap outlines the structural, legal, regulatory, and institutional reforms required to separate generation, transmission, and distribution functions, creating the foundation for improved governance, financial clarity, and future private-sector participation.
This work was led by Ed Elrahal, Senior Energy Policy and Institutional Reform Expert, with significant contributions from Milad Zaed, Senior Advisor for Financial Restructuring and Energy Economics. It was implemented by Chemonics International and funded by USAID, supporting national institutions in shaping the future structure of Libya’s electricity sector.
Summary
This roadmap responds to longstanding challenges in the electricity sector including inefficiency, financial strain, operational constraints, and lack of clear institutional mandates. By introducing an unbundled structure, the roadmap aims to improve governance, accountability, and service quality.
It outlines the steps required to establish independent entities for generation, transmission, and distribution, supported by clear regulatory oversight. The roadmap also highlights the legal and policy reforms necessary to support unbundling, including sector laws, regulatory frameworks, licensing mechanisms, and market rules.
Operational, financial, and human-resource considerations are integrated to ensure the transition is realistic, phased, and implementable. The roadmap also emphasises institutional readiness, capacity-building, and the creation of a modern electricity regulator to oversee fair competition, tariffs, performance, and consumer protection.
Key Achievements
Developed Libya’s first structured roadmap for unbundling the electricity sector
Identified legal and regulatory reforms required to establish an independent electricity regulator
Defined clear roles and responsibilities for generation, transmission, and distribution entities
Outlined a phased transition plan aligned with international best practices
Strengthened institutional understanding of market liberalisation and reform pathways
Provided tools and recommendations to guide future restructuring decisions
Impact
Improved governance, transparency, and accountability across the electricity sector
Strengthened financial sustainability through clearer cost structures and performance management
Enhanced service quality for consumers through better operational focus
Established a foundation for future private-sector participation in energy projects
Increased investor confidence through predictable regulatory and institutional frameworks
Supported Libya’s long-term energy transition and economic diversification goals
We can help your organisation
Green Power Associate supports governments, utilities, and regulators in designing and implementing electricity sector reforms, including unbundling, regulatory frameworks, PPP development, and institutional restructuring.
Our experts help build legal, technical, and operational foundations for modern, efficient, and transparent electricity markets aligned with global best practices.
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