Rabat – In a bid to offset soaring fossil fuel prices and meet decarbonization targets, Morocco has reiterated its vow to deliver low-cost green electricity to industries.
“The government is working on delivering clean electricity to all manufacturers at a lower cost compared to what they are paying now,” Morocco’s Minister of Industry and Commerce Ryad Mezzour said during a parliamentary session at the House of Councillors.
Mezzour added that Morocco succeeded in maintaining the stability of electricity prices for households and industrial operations when global prices for electricity have increased by as much as fourfold due to surging energy prices.
By investing in renewable energy and the decarbonization of industries, Morocco expects a 20-30% drop in energy costs for Moroccan-based factories, the minister noted.
The recent surge in energy bills and consecutive supply bottlenecks due to the COVID-19 lockdown and the war in Ukraine has negatively impacted numerous sectors around the world with some factories, particularly in the automotive industry, choosing to modify their products or relocate their operations to cut costs.
Farmers have also been complaining about the rising energy prices ahead of the new agriculture season with many European growers opting to reduce production or close down greenhouses.
The increase in prices of raw materials provided an additional burden on some companies, leading some operators to close factories in key markets such as the recent case of Siemens Gamesa’s factory in Tangier, Morocco.
The wind turbine manufacturer decided to depart from the Moroccan market amid supply bottlenecks and rising steel and aluminum prices.
Reports of overlapping crises across industries reflect the need to reduce reliance on fossil fuels to ensure energy security.
Recent global calls for reinforcing the decarbonization agenda in energy and heavy industries underline the pressing need for adopting greener and cheaper solutions. However, the shift towards renewable energies and green hydrogen requires sustainable access to capital which is limited to the global north.
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