Morocco Allocates MAD 30 Billion to Modernize National Power Grid

Wednesday 08 January 2025 - 11:20

By: Dakir Madiha

Morocco Allocates MAD 30 Billion to Modernize National Power Grid

Morocco is set to invest nearly MAD 30 billion in its national electricity transmission network between 2024 and 2030, marking a significant expansion of the country's power infrastructure. This investment package excludes a planned high-voltage electricity link project connecting southern and central Morocco, according to Energy Transition and Sustainable Development Minister Leila Benali's announcement in Rabat.

In a groundbreaking development, private sector entities will now have opportunities to invest in the electricity network when necessary, opening new avenues for business participation in the nation's energy infrastructure.

The government's commitment to renewable energy is evident in its recent authorization of projects exceeding 2,000 megawatts (MW) in combined capacity. These initiatives, representing investments of over MAD 19 billion, are expected to generate more than 300 direct jobs and thousands of indirect employment opportunities.

To enhance sector efficiency, the government has implemented strategic measures focused on improving energy governance. A key component of this strategy involves the comprehensive reform of the National Electricity Regulatory Authority (ANRE), which now oversees all energy sector components. The National Office of Electricity and Drinking Water (ONEE) has accelerated the separation of its accounting functions across production, transmission, and distribution activities.

Morocco's renewable energy sector has achieved notable progress, with installed electrical capacity reaching 5.4 gigawatts (GW). Current operational renewable projects supply approximately one-fifth of the national electricity demand. The country has ambitious plans to add over 9 GW of renewable energy capacity between 2023-2027, supported by a substantial budget of nearly MAD 90 billion. The annual pace of renewable energy investments has increased fourfold and is expected to surpass existing targets.

The ministry has streamlined administrative processes, with 42 investment-related decisions, including renewable energy project approvals, now processed within a 30-day timeframe. This efficiency improvement is complemented by increased digitalization of procedures, enhancing transparency in the sector.

To support these initiatives, Morocco has established a comprehensive regulatory and institutional framework, alongside an integrated infrastructure program, ensuring effective management of the country's energy transition goals.