Morocco Needs $9 Billion to Reach Green Energy Production Goals

Rabat – Morocco is planning to add 9 Gigawatt (GW) of energy capacity by 2027, 7GW of which will be through renewables. The ambitious goal will require $9 billion of investment, Energy Minister Leila Benali, said in an interview with Bloomberg.

During the interview, Benali mentioned that Morocco is planning to invest a further $4 billion into its gas sector over the next few years.

While the world is aiming to move towards phasing out natural gas, the minister explained that it remains necessary at this stage to “accommodate the intermittency of renewables.”

“We aim to introduce flexibility into the system and prepare for the emergence of a new hydrogen economy alongside the production of ammonia and green methanol,” she explained.

Much like peer nations, Morocco’s energy consumption is on the rise, reflecting the growth in its demography, and industrial activities, which makes it necessary for the country to bolster grid development, particularly to surpass the 52% target of installed capacity based on renewables by 2030.

The country’s energy production ambition is part of a larger strategy to deliver the 2021 New Development Model, which would see the country achieve GDP growth above the current 3%.

The objective, she stressed, drives the nation’s unwavering attention toward realizing its energy strategy, which currently comprises renewable energy, energy efficiency, and regional integration, ensuring continuity across governmental transitions.

In addition to its ambitions to boost energy production to power socio-economic development, Morocco is equally on its way to emerge as a competitive player in new fuel technologies, especially in green hydrogen.

In June 2023, Morocco’s phosphate giant OCP Group announced plans to invest a staggering $7 billion in the construction of an ammonia plant in Tarfaya, southern Morocco, that will utilize green hydrogen, as an alternative to natural gas, to produce ammonia from renewable sources, Reuters reporters. The project would propel the green energy energy transition for the phosphate industry, one of Morocco’s largest industries.

In a recent report by the Global Energy Monitor, Morocco’s goal of sourcing 52% of its electricity from renewables by 2030 was deemed the “most credible” target within the Middle East and North African (MENA) region.

A significant portion of this capacity, 41 GW, is already committed to hydrogen production or direct electricity export to Europe, the report shows.

What makes the country stand out from peers, however, is that the remaining 3.5 GW of potential utility-scale solar and wind capacity in Morocco could bring the country remarkably close to achieving its renewable energy targets.

Noting Morocco’s ambitions to become a key part of the future hydrogen supply chain, the report explains that while “not all identified prospective projects will be built, … as long as the large hydrogen and export projects do not divert resources and financing, and Morocco continues to double down on renewable energy, the country is on track to meet its target.”