Libya’s outstanding electricity dues to Egypt have exceeded $200 million, representing the largest share of Cairo’s total arrears from regional power exports. The figure, disclosed by an Egyptian government source to Asharq Business news website, highlights Libya’s dominant role in the $320 million owed collectively by Libya, Jordan and Sudan up to the end of July 2025.
According to the source, the arrears have accumulated since 2023 under cross-border electricity supply agreements. Of the total debt, Libya accounts for around 62.5 per cent, while the remainder is split between Jordan and Sudan. Despite the backlog, electricity flows continue uninterrupted, with the three countries pledging to reschedule and settle the amounts in due course.
Egypt’s exports to Libya are part of wider regional integration projects designed to strengthen neighbouring grids and utilise Egypt’s significant surplus capacity. Over the past decade, Cairo has invested nearly 965 billion Egyptian pounds into power generation, grid expansion and infrastructure upgrades. This has lifted its installed capacity to about 58,000 megawatts, against a peak summer demand of 40,000 megawatts, leaving a sizeable production surplus.
For Libya, electricity imports from Egypt remain vital for supporting its domestic network, which continues to suffer from instability and insufficient generation capacity. The reliance on regional links has made arrears settlement a key issue for sustaining supply and ensuring future cooperation.
Egypt, meanwhile, is positioning itself as a regional energy hub. In addition to its existing links with Libya, Sudan and Jordan, it is constructing a 3,000 megawatt connection with Saudi Arabia and planning further integration with Greece and Cyprus. Such projects aim to carry renewable power to Europe and reinforce Egypt’s role in regional energy security.
The outstanding dues underscore Libya’s dependence on external power sources while underlining the strategic value of Egypt’s cross-border electricity network.
