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Rabat – Morocco is heading towards an era of unprecedented growth in green energy investments by 2027, said Leila Benali, the Energy Minister.
Speaking at the House of Representatives on Tuesday, Benali said that private sector investment in renewable energies is set to quadruple compared to the period from 2009 to 2022.
“The government attached the greatest importance to stimulating the growth in private sector investment in the green energy sector,” Benali stressed. The government has actively worked to accelerate investments in the green energy sector since 2021, the minister explained, adding that the strengthening and development of the national electricity grid was a key driver behind the positive momentum.
The minister further added that the government has earmarked MAD 23 billion ($2.3 billion) for the sector in the 2023-2027 period. The budget is dedicated to achieving optimal integration of renewable energies and ensuring a reliable electricity supply to various entities.
The government has recently launched an expression of interest for the construction of a direct high-voltage electrical connection with a capacity of 3 gigawatts, covering a distance of 1400 kilometers to transmit electricity from the south to the north.
Morocco has already amassed an impressive overall capacity in renewable energy, totaling approximately 4.6 gigawatts. “Solar energy claims a significant share, with 852 megawatts dedicated to solar projects under a substantial investment of MAD 30 billion ($3 billion),” she explained.
The commitment to renewable energy projects has been unwavering, with a cumulative investment of MAD 60 billion since the inception of the national energy strategy in 2009, the minister added.
Benali further disclosed that over 50% of wind energy projects have been developed by private entities, reflecting the growing trust in the country’s green energy sector. The national electricity infrastructure plan is further geared towards accelerating private sector investment in renewable energy and fortifying the national electricity grid to bolster the nation’s renewable energy capacity.
Collaborating with the National Office of Electricity and Drinking Water, Benali unveiled plans for an additional capacity of 9.6 gigawatts by 2027.
The supplemental capacity for renewable energy is estimated at around 7.5 gigawatts, coupled with a substantial investment of approximately MAD 75 billion ($7.5 billion). The budget does not include projects related to green hydrogen, seawater desalination, and carbon removal from the national industrial sector.
Read Also: Morocco Needs $9 Billion to Reach Green Energy Production Goals
In an earlier interview with Bloomberg in December, Benali said that 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.
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 activity, 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.
