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A bold roadmap guiding Libya toward a financially sustainable electricity sector, where efficiency, accountability, and smart planning replace dependence on government subsidies.
Project Overview
The Zero-Subsidy Operational Plan for the Electricity Sector outlines a practical, phased pathway for reducing and ultimately eliminating government subsidies while ensuring reliable, affordable, and financially sustainable electricity services. The plan provides the tools, actions, and institutional reforms needed to restructure sector finances, strengthen cost recovery, and build a more efficient and transparent electricity system.
This work was led by Dr. Mongi Safra, Senior Energy Policy Economist and Financial Analyst, whose leadership guided the development of a financially sound roadmap capable of supporting long-term sector sustainability and improved economic governance.
Summary
The electricity sector in Libya has long relied on heavy government subsidies that limit investment, distort pricing, discourage efficiency, and burden the national budget. This operational plan responds to these challenges by presenting a balanced and implementable approach to subsidy reduction.
The plan assesses sector costs, financial flows, tariff structures, operational inefficiencies, and institutional readiness. It proposes phased reforms combining operational improvements, strengthened revenue collection, enhanced governance, cost-reflective tariffs, and targeted social protections for vulnerable consumers.
A major focus of the plan is improving utility performance, reducing losses, improving billing and collection, enhancing service reliability, and increasing transparency, so that subsidy removal becomes feasible without harming consumers or economic stability.
The plan also outlines clear actions for ministries, regulators, GECOL, and oversight bodies to coordinate the transition while maintaining public trust and system reliability.
Key Achievements
Developed a comprehensive roadmap for gradually phasing out electricity subsidies
Assessed sector financial flows, cost structures, and revenue gaps
Proposed tariff reforms aligned with consumer segments and international best practices
Integrated operational improvements to increase efficiency and reduce system losses
Introduced mechanisms to protect low-income households during the transition
Strengthened institutional coordination among ministries, the regulator, and GECOL
Created clear timelines, actions, and responsibilities for subsidy reform
Impact
Improved financial sustainability of the electricity sector
Reduced pressure on the national budget and public finances
Increased utility efficiency and operational performance
More transparent and predictable tariff structures
Better service quality supported by reinvested revenues
Stronger investor confidence and improved sector governance
A realistic transition pathway that balances economic, social, and operational needs
We can help your organisation
Green Power Associate supports governments and energy institutions in designing subsidy-reform strategies rooted in data, financial modelling, and social protection.
Our experts help develop operational plans, tariff frameworks, institutional reforms, and stakeholder communication strategies that promote financial sustainability while protecting vulnerable consumers and maintaining service quality.
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