Alpha Dhabi deal to shape future of energy in Libya

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• Alpha Dhabi subsidiary W Solar agrees long-term partnership with Libya
• Solar power plants set will produce 500 MW in first phase
• Project’s long-term

W Solar Investment, a subsidiary of Alpha Dhabi Holding, has signed a memorandum of understanding with the General Electricity Company of Libya to develop a long-term partnership for renewable energy. 

Under the MoU, signed on Monday, W Solar will build solar photovoltaic power generation plants in Libya and sell the net delivered energy to the government. 

The photovoltaic program will be designed to produce 500 MW in its first phase with a long-term target of 2000 MW. Under the agreement, W Solar will own and operate the project for 25 years from the start of production. 

Libya is aiming for 22 percent of its electricity generation to come from renewable energy by 2030. Libya is also in the process of implementing its national energy efficiency action plan. Libya has been a member of the Regional Centre for Renewable Energy & Energy Efficiency since 2008.

Weam Elabdelie, chairman of the General Electricity Company of Libya, said: “There’s no doubt that the MoU with W Solar is important to the economic reform for the renewable energy sector in Libya. The Libyan government has been showing a serious intention to develop renewable energy. 

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“As we get on with unleashing investments in the renewable energy sector, having a partner like W Solar will definitely help accelerate the national green energy agenda.”

Zafar Muhammad, CEO of W Solar, said: “This is a landmark agreement for W Solar as we look to grow our operations in Africa and establish long-term relationships with key partners. With this MoU, W Solar is entering a new growth phase, and we are committed to bringing this cooperation to the next level.” 

W Solar Investment is an Abu Dhabi-based joint venture of Alpha Dhabi Holding and Abu Dhabi Developmental Holding Company, which own 75 percent and 25 percent respectively. 

It has signed several agreements to implement and co-invest in solar and wind projects in African, Asian and European countries.

Earlier this year, Hamad Al Ameri, CEO of Alpha Dhabi Holding, said the company planned to embark on an international acquisition spree after announcing record profits of AED5.2 billion ($1.4 billion) for 2021.

Alpha Dhabi’s net profit rose significantly from AED218 million in 2020 while revenues jumped 400 percent to AED18.8 billion from AED3.8 billion in 2020.

Alpha Dhabi’s Libya agreement is the latest in a series of ambitious projects launched by Gulf nations to battle climate change.

Earlier this month, UAE President Sheikh Mohamed bin Zayed Al Nahyan pledged an extra $50 billion investment over the next decade. The UAE has also launched a Hydrogen Leadership Roadmap that seeks to position the country as a top producer and exporter of green and blue hydrogen in the pursuit of net zero.

Last year, Riyadh launched the Saudi Green Initiative, a strategy that aims to green the desert, reduce temperatures and make the country’s cities more sustainable for the population. The UAE and Bahrain have declared net zero targets and Qatar has pledged that the World Cup, which begins in November, will be carbon neutral.