Power Sector Transition in Morocco – Global Energy Monitor

Power Sector Transition in Morocco – Global Energy Monitor

Morocco, a country burdened by the impacts of climate change, has emerged as a global leader in the renewable energy revolution. As a “global warming hotspot” with the potential for rainfall declining by 20-30% by the end of the century, Morocco is taking decisive action to reshape its power landscape. ​Driven by ambitious targets and a steadfast commitment to sustainability, the North African nation is rapidly expanding its renewable energy capacity, diversifying its energy mix, and positioning itself as a strategic partner for Europe’s clean energy future.

Pioneering Solar and Wind Power

At the forefront of Morocco’s renewable energy initiatives is its solar energy development. The country boasts an average solar potential of 5 kilowatt hours (kWh) per square meter per day, making it an ideal location for large-scale solar projects. The crown jewel of this effort is the 510MW Ouarzazate Noor Complex, touted as the world’s largest concentrated solar power (CSP) plant. However, the project’s water-intensive nature has also raised concerns about its impact on critical dams and local communities.

Complementing its solar prowess, Morocco has also witnessed a remarkable growth in its wind power sector. With an estimated potential of 22GW of fixed offshore wind and 178GW of floating offshore wind within 200km of its coast, the country is poised to harness the power of the wind. Currently, Morocco has an installed capacity of 1,466MW from wind energy, the second-largest volume in Africa behind South Africa.

Grid Modernization and Interconnectivity

To support its renewable energy expansion, Morocco has been actively modernizing its power grid and enhancing its regional interconnectivity. The country’s transmission grid now covers the entire nation and is interconnected with the European and Algerian power networks. This includes the Spain-Morocco interconnection, which consists of two 400kV lines commissioned in 1997 and 2006, with plans for a third line to increase the interconnection capacity to 1,500MW.

Morocco’s grid expansion efforts have also enabled it to become a net exporter of electricity since 2019, with 1,207.7 gigawatt hours (GWh) exported. This is largely due to the start of commercial operations of the 1,600MW Safi thermal power plant in December 2018, which has the capacity to meet 25% of the national electricity demand.

Barriers and Challenges

Despite Morocco’s remarkable progress in renewable energy, the country faces several barriers and challenges that require concerted efforts to overcome.

Policy and Regulatory Barriers

While the Moroccan government has introduced various policies and regulations to support the renewable energy transition, such as the “Law 13-09 on Renewable Energy” and the “Law 16-08 on Self-Generation,” the legislative and regulatory framework still needs to be further refined to provide greater clarity and certainty for private sector investors.

Financing Constraints

Securing adequate financing for large-scale renewable energy projects remains a significant challenge. Although Morocco has attracted investments from the African Development Bank, the European Investment Bank, and international private companies, the country needs to explore innovative financing mechanisms and de-risking strategies to attract more commercial investment.

Infrastructure Limitations

While Morocco has made significant strides in grid modernization and interconnectivity, the country’s power infrastructure still faces limitations in terms of capacity and reliability, particularly in remote and rural areas. Continued investment in grid upgrades, energy storage solutions, and smart grid technologies will be crucial to support the integration of variable renewable energy sources.

Stakeholder Involvement

Morocco’s renewable energy transition involves a diverse array of stakeholders, each playing a crucial role in shaping the country’s energy future.

Government Policies and Programs

The Moroccan government has been the driving force behind the country’s renewable energy push, with strategies such as the “National Energy Strategy” and the “National Renewable Energy and Energy Efficiency Plan.” These policy initiatives have set ambitious targets for renewable energy deployment and have been backed by significant investments in solar, wind, and hydrogen projects.

Private Sector Engagement

Foreign private companies have been actively involved in Morocco’s renewable energy projects, with the French company Engie, the Spanish Gamesa, the Saudi ACWA, the Emirati Taqa, and the German Siemens among the key players in the solar and wind sectors. The private sector’s participation has been crucial in driving technological innovation and mobilizing financial resources.

Community Participation

While the rapid expansion of renewable energy projects has brought economic benefits to some rural and remote areas, it has also led to land disputes and concerns over water scarcity, particularly around the Ouarzazate Noor Complex. Ongoing efforts to engage local communities and address their concerns are essential for ensuring the social acceptance and sustainability of these projects.

Environmental and Economic Impacts

Morocco’s transition to renewable energy has far-reaching environmental and economic implications, both within the country and beyond its borders.

Emission Reduction Targets

As part of its commitment to the Paris Agreement, Morocco has set ambitious targets for reducing greenhouse gas emissions. The country aims to reduce its emissions by 17-18% by 2030, with a stretch target of 42-46% if it receives international support. The expansion of renewable energy is a crucial component of this decarbonization strategy.

Job Creation and Economic Growth

Morocco’s renewable energy sector has already created thousands of jobs, both during the construction and operation phases of various projects. The Xlinks Morocco-UK Power Project, for instance, is expected to generate nearly 10,000 jobs in Morocco, with 2,000 being permanent positions. The country’s renewable energy initiatives are also poised to drive economic growth and contribute to sustainable development.

Alignment with Sustainable Development Goals

Morocco’s transition to clean energy aligns with the United Nations’ Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action). By reducing its reliance on fossil fuels, Morocco is not only mitigating climate change but also expanding access to affordable and sustainable energy for its citizens.

As Morocco continues to lead the charge in renewable energy expansion, it is positioning itself as a strategic partner for Europe’s clean energy future. Countries across the Mediterranean are increasingly looking to Morocco as a solution to their own energy challenges, and the European Future Energy Forum is at the forefront of this collaborative effort. Through joint projects, knowledge-sharing, and innovative financing mechanisms, Morocco and its European counterparts are ushering in a new era of sustainable power generation that will shape the continent’s energy landscape for decades to come.

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