Morocco expects an increase in green energy investments in the coming years
Morocco continues to consolidate its position as a key player in the field of renewable energy at regional and global level. Indeed, as recently announced by the Moroccan Minister of Energy, Leila Benali, the Kingdom is heading towards an era of "unprecedented" growth in renewable energy investments between now and 2027.
During her speech to the House of Representatives, Benali also stated that private sector investment in clean energy will quadruple compared to the period from 2009 to 2022.
"The government attached the utmost importance to stimulating the growth of private sector investment in the green energy sector," Benali stressed, in statements reported by Morocco World News. The Energy Minister recalled that Rabat has promoted measures to encourage and promote investments in the green energy sector since 2021. She also stressed that the strengthening and development of the national electricity grid "was a key factor behind the positive momentum".
Benali added that the government has earmarked 23 billion dirhams ($2.3 billion) for the green energy sector for the period 2023-2027. This budget aims to achieve optimal integration of renewable energies and ensure reliable electricity supply to various entities.
The Moroccan government has recently expressed interest in building a direct high-voltage electricity connection with a capacity of 3 gigawatts, which will cover a distance of 1,400 kilometres to transmit electricity from the south to the north of the country.
According to figures from the Moroccan media, the Kingdom has already accumulated an impressive overall renewable energy capacity, totalling approximately 4.6 gigawatts. "Solar energy occupies an important share: 852 megawatts are dedicated to solar projects with a significant investment of 30 billion dirhams ($3 billion)," Benali explained.
Rabat is strongly committed to clean energy projects, as the minister stressed. Proof of this is, for example, the cumulative investment of 60 billion dirhams since the launch of the national energy strategy in 2009.
Benali revealed that more than 50% of wind energy projects have been developed by private entities, reflecting the growing confidence in the country's green energy sector. Furthermore, the national electricity infrastructure plan aims to accelerate private sector investment in renewable energy and strengthen the national electricity grid to bolster the nation's green energy capacity.
In collaboration with the National Electricity and Drinking Water Bureau, Benali mentioned plans for an additional 9.6 gigawatts of capacity by 2027.
The additional renewable energy capacity is estimated at about 7.5 gigawatts, along with substantial investment of about 75 billion DH ($7.5 billion). The budget does not include projects related to green hydrogen, seawater desalination and carbon removal from the domestic industrial sector, areas where Morocco is also taking firm steps.
In an interview with Bloomberg last December, Benali said Morocco plans to add 9 gigawatts (GW) of power capacity by 2027, of which 7 GW will come from clean energy. This ambitious target will require $9 billion in investment.
During the interview, Benali also indicated that Morocco plans to invest another $4 billion in its gas sector in the coming years.
Although the world is trying to move towards phasing out natural gas, the minister explained that it is still necessary at this stage, to "adapt to the intermittency of renewable energies".
"Our goal is to introduce flexibility into the system and prepare for the emergence of a new hydrogen economy along with the production of ammonia and green methanol," Benali said.
Due to its growing demographics and increased industrial activity in several parts of the country, Morocco's energy consumption is increasing, making it necessary for the Kingdom to boost grid development, in particular to exceed the target of 52% of installed capacity based on renewable energy by 2030.
In this sense, the country's energy production ambition is part of a broader strategy to implement the New Development Model 2021, which would enable the country to achieve GDP growth above the current 3%.