Egypt and Libya have agreed to strengthen cooperation in the electricity and energy sectors, with a new memorandum of understanding (MoU) aimed at supporting the modernisation of Libya’s power infrastructure.
The agreement was signed between Egypt’s Ministry of Electricity and Renewable Energy and Libya’s Fund for Reconstruction and Development. It provides a framework for Egyptian technical expertise to be deployed in upgrading Libya’s electricity networks and improving their operational efficiency as reconstruction and urban development accelerate across the country.
The partnership is expected to support Libya’s expanding electricity requirements, particularly as new housing, commercial developments and infrastructure projects increase demand for reliable power. Cooperation will also extend to renewable energy and the introduction of modern technologies and solutions designed to improve the efficiency and sustainability of Libya’s electricity system.
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Boost energy relationship
For Libya, rebuilding and expanding electricity infrastructure is an important component of broader reconstruction efforts after years of conflict and infrastructure deterioration. Strengthening generation, transmission and distribution networks could help address supply constraints while providing the power infrastructure needed to support economic activity and new development projects.
The MoU also adds to a growing energy relationship between Egypt and Libya that extends beyond electricity. In January 2026, Egypt’s Petroleum Projects and Technical Consultations Company (PETROJET) and Libya’s National Oil Corporation (NOC) signed a separate MoU covering cooperation in petroleum, natural gas and mining. That agreement established areas for potential collaboration including research and exploration, crude oil refining and refinery development, as well as studies into the transportation of crude oil and natural gas between the two countries.
The latest electricity agreement therefore broadens the scope of Egypt-Libya energy cooperation from hydrocarbons into power infrastructure and renewable energy. It could also create opportunities for Egyptian engineering and energy companies to participate in projects linked to Libya’s reconstruction programme.
The two countries are increasingly seeking to use technical partnerships and cross-border expertise to support infrastructure development, with energy positioned as a key area of cooperation. For Egypt, deeper engagement in Libya provides an avenue to deploy its engineering and construction capabilities, while Libya can draw on neighbouring Egypt’s experience in developing and operating large-scale energy infrastructure.
