The Renewable Energy Authority of Libya (REAoL) reported yesterday that US company Penta Energy Services signed a Power Purchase Agreement (PPA) for a 25 MW solar photovoltaic (PV) power plant project.
The project aims to supply a portion of the electricity needs of the Libyan Iron and Steel Company (LISCO) in Misrata.
It will be recalled that in May 2025, Penta Energy Services signed an MoU with the Renewable Energy Holding Company ‘‘to develop and implement a strategic solar power generation project in Libya’’.
REAoL said the PPA comes as part of the implementation of the National Strategy for Renewable Energy and Energy Efficiency—which aims to expand the use of renewable energy sources, enhance energy efficiency, and support a gradual transition toward a more sustainable energy system.
It added that, with an initial installed capacity of 25 MW, this agreement marks the culmination of its ongoing efforts to translate the National Strategy’s objectives into tangible projects on the ground, building upon the steps and measures previously taken to advance the project and achieve its goals.
The agreement was signed by Penta Energy Services, the Renewable Energy Holding Company, and the LISCO. The process was overseen by the REAoL in cooperation with the General Electricity Company of Libya (GECOL), within a partnership framework designed to leverage modern expertise and technologies in solar energy development to support productive sectors.
REAoL said the project’s strategic importance lies in its connection to one of Libya’s premier industrial facilities. Integrating solar energy technology into the LISCO’s energy system will help diversify electricity supply sources, improve energy consumption efficiency, support operational performance, and reduce reliance on conventional energy sources, while also bolstering environmental sustainability within the industrial sector.
It added that the project serves as a practical model for harnessing renewable energy sources to support industrial and production activities and leveraging Libya’s solar energy potential. This fosters integration between the energy and industrial sectors and supports the transition toward a more efficient and sustainable economy.
REAoL said the agreement also highlights the importance of collaboration between national institutions and international experts in developing renewable energy projects. This paves the way for knowledge and technology transfer, local capacity building, investment attraction, and the expansion of projects utilizing clean energy sources.
Signing the Power Purchase Agreement (PPA) marks a significant milestone in the project’s trajectory, signalling a shift from planning and feasibility studies to actual implementation. This sets the stage for developing further renewable energy projects linked to industrial and production sectors across Libya, it added.
REAoL said that through this project, it reaffirms its commitment to translating national strategic goals into tangible projects with significant economic and developmental impact. It aims to boost the contribution of renewable energy to national industry, enhance resource efficiency, and help build a more sustainable and resilient national energy system.