PV Risk Analysis Libya

Libya is endowed with excellent conditions for solar power generation. In a move to better exploit this high solar potential, the new Libyan government currently focuses on the roll-out of photovoltaic (PV) projects, most of which shall be implemented as large, ground-mounted power plants in the MW-scale.

Due to the particular situation of Libya - a country still suffering from political instability and only few experience with renewable energy projects - the success of the projects is challenged by a multitude of risks. The nature of these risks largely exceeds the well-known monetary risks of conventional, investor-based PV projects in Europe. The analysis carried out by the Wuppertal Institute (commissioned by GIZ) sets out to assess the specific Libyan risk situation for the implementation of three photovoltaic power plants projects (total capacity 69 MW), currently planned by the Renewable Energy Authority of Libya (REAoL).

These analysed risks have different origins (e.g. security and technical risks; as well as administrative, social and environmental risks) which could affect the projects at different implementation stages. To provide the Libyan decision makers with input for potential risk mitigation strategies, but also to increase their awareness regarding social acceptance issues, a multi-criteria risk analysis has been prepared. It should help to improve the conditions for large-scale PV power, prevent project failures, financial losses as well as delays in Libya's efforts to fulfil its renewable energy targets.