The government has announced its intentions to boost Libya's power-generating capacity threefold over the next decade, in order to meet the rapidly rising energy demands that will inevitably occur as the country's economy develops. Conversely, the authorities believe that they will not be able to attract foreign investment if the country cannot guarantee secure and stable power supplies. Libya currently produces around 6.2 gw of electricity; it aims to raise production to 20 gw by 2020. This should be more than sufficient for Libya's domestic needs, allowing for the export of any surplus energy.

Currently, Libya uses oil to produce most of its power, but the country has hopes that greater gas discoveries will allow it to switch to gas-fired power stations, while still leaving some gas, and freeing up more oil, for export. The Libyan authorities also hope to supply 10% of the country's energy needs from renewable sources, mainly solar and wind power. The targeted capacity increase of 20 gw by 2020 seems highly optimistic given the limited increases in capacity that Libya has achieved to date.