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Doha – A new report by SolarPower Europe, backed by the Global Solar Council and Morocco’s Cluster EnR, lays out bold projections for Morocco’s solar energy capacity. The findings spotlight massive opportunities in the country’s green transition — but also warn of key hurdles that could slow progress.
The comprehensive analysis comes as Morocco pushes to achieve its target of at least 52% renewable energy in its installed electricity capacity by 2030.
According to the report, Morocco’s exceptional solar resources position it uniquely for solar power development, with global horizontal irradiation (GHI) reaching as high as 2,264 kWh/m²/year in the southern regions.
The country currently has a total installed electricity capacity of 11,987 MW, with thermal sources accounting for 6,676 MW, while solar capacity stands at 831 MW, comprising both photovoltaic and concentrated solar power installations.
“Morocco has emerged as a key player in the renewable energy sector, especially in solar,” states the report, which represents the fifteenth in a series of global market analyses by SolarPower Europe.
The study, developed through extensive consultations with key stakeholders including public and private sector representatives as well as international organizations, provides detailed insights into market dynamics and regulatory frameworks shaping Morocco’s solar sector.
Despite Morocco’s targets, progress remains uneven
According to the latest data from ONEE cited in the report, Morocco’s photovoltaic cumulative capacity reached 0.32 GW in 2023.
Under SolarPower Europe’s medium scenario projections, this capacity is expected to see “a steady increase, reaching 2.27 GW of cumulative installed capacity by 2027 and peaking at 2.97 GW in 2028.” The report’s optimistic high scenario suggests capacity could potentially rise to 4.35 GW by 2028.
“Morocco is a pioneer of solar in Africa, and we forecast the addition of 2.2 GW more by 2028,” said Sonia Dunlop, director general of the Global Solar Council.
“With a solid regulatory framework, long-term ambition and growing electricity demand driven by the national green hydrogen strategy, solar costs will continue to fall, opening new investment opportunities,” he explained.
However, the report notes that “despite Morocco’s targets for renewable energy, the progress in achieving these goals has been uneven.”
This moderate development is attributed to several factors, including “a higher focus on CSP, delays in the development of PV projects, as well as grid integration challenges.”
Infrastructure must evolve with growing capacity
The report stresses critical infrastructure needs as Morocco expands its solar capacity. “In particular, strengthening the north-south grid connections is of paramount importance,” the document states.
It further notes that while “solar energy is predominantly generated in the southern regions of Morocco, which have high solar irradiance, the major demand centres are located in the north.”
A prime example of Morocco’s large-scale solar development is the Noor Ouarzazate complex, one of the world’s largest concentrated solar power facilities, with 510 MW of installed capacity and an additional 72 MW for solar PV.
The project’s completion in four phases between 2016 and 2018 demonstrates Morocco’s commitment to major solar infrastructure development.
ONEE, Morocco’s national grid operator, is already taking steps to address this challenge. The report details plans for “a 3 GW of VHV grid between Oued Lekraâ (near Dakhla, in the south of Morocco) and Médiouna (in the Casablanca region, in the centre-northern of the country).”
This project will be implemented in two phases: “the first one with a link of 1,500 MW of capacity by 2026, and a second one with an additional 1,500 MW by 2028.”
Clear regulatory framework needed
The report points to several key regulatory developments, including Law 82-21 (2023), which “establishes new requirements for self-generation of electricity based on the installation’s capacity and its connection to the grid.”
Under this framework, “installations with a capacity of 5 MW or more must obtain prior approval from the relevant grid operator.”
Additionally, Morocco has recently implemented significant pricing reforms. “According to the 2024 Finance Act, electricity prices were subject to a Value Added Tax (VAT) rate of 16% in 2024. The VAT rate related to 2025 is 18%, which will converge to 20% in 2026,” the report states.
It adds that “electricity generated from Renewable Energy Sources (RES) had a rate of 12% in 2024, which is reduced to 10% starting from 2025.”
The report outlines substantial financial incentives to attract investment, including “a bonus equal to 5% of the investment” for projects worth more than MAD 50 million (€4.7 million) that create at least 50 jobs.
Recent electricity pricing reforms have further enhanced investment attractiveness, with ANRE calculations showing “an average reduction of 38% of the tariffs compared to 2023.”
Fatima Zahra El Khalifa, director general of Cluster EnR, is quoted in the report stating: “Thanks to its enormous solar potential, Morocco positions itself as a key player in the renewable energy sector.”
“With strategic investments in solar infrastructure, Morocco is well on track to realize its full potential, accelerate its energy transition and foster long-term sustainable growth,” she continued.
The report concludes with specific recommendations, emphasizing that “Morocco should continue on the path of electricity market liberalisation, in order to attract more private investments and enable companies to sustain the efforts made so far on the renewable energy front.”
