As of January 2004, Libya had electric power production capacity of about 4.7 gigawatts (GW). In 2004, Libya generated 19.4 billion kilowatthours (Bkwh) of electricity, while consuming 18.1 Bkwh. Most of Libya's existing power stations are being converted from oil to natural gas, and new power plants are being built to run on natural gas, primarily to maximize the volume of oil available for export purposes. Libya is also looking at potential wind and solar projects, particularly in remote regions where it is impractical to extend the power grid.

Libya's electric power demand has grown rapidly over the past few decades, with current plans calling for a doubling in power generating capacity by 2010. Libya's state-owned General Electricity Company (GECOL) is building several new power plants. One factor leading to rapid power demand growth is the fact that electricity is heavily subsidized, at perhaps one-third the market cost of 12 cents per kilowatthour. Currently, Libya's power grid consists of around 8,000 miles of 220-kV lines and 13,000 miles of 66-kV and 30kV lines. Libya also is looking at increased links with the Tunisian and Egyptian power grids.