ONEE secures €300 million from European partners for grid expansion

Friday 23 May 2025 - 17:20

By: Dakir Madiha

ONEE secures €300 million from European partners for grid expansion

Morocco’s National Office of Electricity and Drinking Water (ONEE) has announced a significant €300 million financing package aimed at modernizing and extending the national electricity transport network. This funding, provided by the European Investment Bank (EIB), the German Development Bank (KfW), and the European Union (EU), is poised to enhance the integration of renewable energy sources across a vast 731-kilometer grid.

The announcement was made during a high-level visit to the 270 MW Jbel Lahdid wind farm in Essaouira province. Prominent figures such as EIB Vice President Ioannis Tsakiris, KfW board member Christiane Laibach, and EU Delegation Deputy Head Daniele Dotto were present, underscoring the importance of this initiative.

The financing breakdown includes €170 million from the EIB and €130 million from KfW, with the goal of bolstering Morocco’s electrical grid to improve renewable energy integration. This initiative is expected to increase the grid's transmission capacity by 1,850 Mega Volt Amperes, thereby enhancing supply security and reducing greenhouse gas emissions by an estimated 390,000 tons of CO2 equivalent annually by 2030. Furthermore, it aims to stimulate economic growth in various regions throughout the country.

The Jbel Lahdid wind farm, which commenced operations in October 2024, represents a crucial element of ONEE's broader strategy to enhance renewable energy capacity. The facility is part of the 1,000 MW Integrated Wind Energy Program, co-financed through loans from the EIB and KfW, along with an EU grant.

EIB Vice President Tsakiris highlighted the partnership between Morocco and European institutions in facilitating the energy transition, stating that the new funding will serve as a vital link between green energy production and the necessary electricity transport infrastructure. EU Ambassador Patricia Llombart Cussac echoed this sentiment, noting that the initiative exemplifies the achievements of the Morocco-EU Green Partnership.

The financing is integral to ONEE's ambitious plan amounting to MAD 220 billion ($22 billion) by 2030, with MAD 177 billion ($17.7 billion) specifically allocated to the electricity sector. This plan seeks to elevate installed renewable energy capacity to 56% by the end of 2027, with key projects including the development of an additional 12.5 GW of renewable capacity and the implementation of a 3,000 MW electrical highway.

ONEE’s Director General Tarik Hamane reiterated the Kingdom’s commitment to sustainable energy under the guidance of His Majesty King Mohammed VI, emphasizing that Morocco is on a resolute path toward an inclusive energy model. With over 45% of its current installed capacity derived from renewable sources and a transmission network that exceeds 30,000 kilometers, Morocco is well-positioned to lead in the energy transition.

In summary, this financing package not only marks a significant milestone for Morocco’s energy infrastructure but also reflects the collaborative efforts between Morocco and its European partners to foster a sustainable energy future.