Morocco Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in morocco, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Energy
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Overview

Morocco’s energy sector depends heavily on imported hydrocarbons. Currently, the country imports approximately 90 percent of its energy needs. Total primary energy consumption has increased by about five percent per year since 2004, but Morocco plans to decrease energy consumption by 15 percent from 2016 levels by 2030 through energy efficiency measures. According to the National Electricity Regulatory Authority (ANRE), Morocco’s electricity production in 2023 came from coal (64 percent), hydroelectricity (0.8 percent), fuel oil (3.8 percent), natural gas (10 percent), wind (15.4 percent), solar (5.1 percent), pumped storage power plants (PSP - STEP in French) 0.4 percent, others 0.4 percent. 

The Government of Morocco seeks to increase the security of the energy supply by reducing dependence on imports, including increasing the use of renewable sources for electricity production. As of the end of 2023, the share of renewable energy in the electrical capacity mix stood 11.42 GW (ANRE data). Hence, Morocco was ranked among the top five of African countries in terms of renewable energies with a capacity of 4,050 MW according to the latest report published by the International Renewable Energy Agency. The Moroccan government has expressed confidence that renewable energy sources will provide more than 52 percent of the total installed capacity by 2030. 

Renewable energy projects are supported through the Moroccan Agency for Sustainable Energy’s (MASEN) institutional framework offering a ‘one stop shop’ for private project developers, bringing together permitting, land acquisition, and financing aspects as well as securing a state guarantee for the investment. Independent Power Producers (IPP) may also develop Renewable Energy (RE) projects and sell the electricity to a consumer or a consortium of consumers having access to very high voltage (VHV), high voltage (HV), and under certain conditions to medium voltage (MV).

The Moroccan government has prioritized the growth of the renewable energy sector through the enhancement of the regulatory framework. The Ministry of Energy Transition, and Sustainable Development has recently amended Law 13-09 on Renewable Energy, Law 82-21 on self-production of electrical energy, as well as Law 48-15 on the regulation of the electricity sector and the creation of the ANRE (National Agency of Electricity Regulation). These amendments aim to improve the legislative and regulatory framework governing renewable energy projects by the private sector, while guaranteeing the security and viability of the national electricity system.

Leading Sub-Sectors

Morocco offers opportunities to U.S. firms in the following segments:

  • Electrical components
  • Engineering, Procurement, and Construction (EPC) Contracting
  • Generators
  • Solar water heaters
  • Batteries/ Chargers
  • Concentrated solar power (CSP)
  • Photovoltaic (PV)
  • Connections
  • Micro Hydraulic Centrals
  • Switches
  • Fittings
  • High, medium, and low-voltage applications.
  • Technical training for facilities repair and maintenance
  • Wind power equipment]
  • Smart meters
  • Transmission sensors
  • Grid applications
  • Electrolyzers 

Opportunities 

Total installed capacity from renewable energy sources stands at 4,550 MW, corresponding to 38.2 percent of total installed electrical capacity. Morocco’s 2009 National Energy Strategy and its Paris Agreement NDC target call for an increase of renewable energies in the electricity mix to 52 percent by 2030. This target was recently increased to 56 percent. The National Office of Electricity and Water (ONEE) is targeting an installed electrical capacity of 10.5 GW from renewable energy by 2030, with 4.7 from solar, 4.3 from wind and 1.5 from hydropower.  

  
Solar Energy

Morocco has an average solar potential of five kilowatt hours (kWh) per square meter per day, although this varies geographically. Total installed capacity from solar energy currently stands at 831 MW. 

Wind Energy

According to the Ministry of Energy Transition, and Sustainable Development, Morocco could potentially generate 25,000 MW of wind power. At present, Morocco has an installed capacity from wind energy of 1,650 MW, the second largest volume in Africa behind South Africa.  

Hydropower Energy

Existing hydropower resources reached 1,800 MW of total capacity installed by December 2022. ONEE has started the construction of a Pumped Energy Transfer Station (PETS) of 350 MW at the Abdelmoumen site in the Agadir region. ONEE also operates the Afourar PETS of 464 MW, which has been used as a power system balancing asset since 2004. 

Energy Efficiency

Morocco’s energy efficiency strategy includes an efficiency target of 20 percent by 2030, including specific energy consumption reduction targets and to implement development plans for transportation (-24percent), industry (-22percent), construction (-14percent), and public lighting (-13percent). 

Fossil Fuels

In 2024, the United States was Morocco’s top source of imported fuels, including coal, propane, and petroleum products. Imported fuels provide over 90 percent of Morocco’s energy needs, according to the World Bank. In order to meet the growing demand for electricity and address certain issues arising from the significant expansion of renewable energy, Morocco plans to diversify its generation mix by increasing the use of liquefied natural gas (LNG). 

Morocco’s new “Gas Roadmap,” published May 2024, aims to develop a domestic gas production and supply, and the delivery of natural gas to consumers throughout the country. The roadmap is structured around three phases: 

  • Phase One: Covers the period 2025-2027 and focuses on boosting domestic production by building pipelines to connect the Tendrara project (ref B) to the Maghreb Europe Gas (MEG) pipeline, and establishing new LNG import capabilities through the tendering, construction, and operation of an LNG terminal at the Port of Nador West Med, along with connecting pipelines to the MEG and Mohammedia. This phase also includes updating the pre-feasibility study for an Atlantic coast LNG terminal.
     
  • Phase Two: Will be deployed after 2030 (medium term) and will see the delivery of the Atlantic coast LNG terminal, the development of another LNG terminal at the Dakhla Atlantic port, and the construction of additional pipelines to expand the gas network.
     
  • Phase Three: Focuses on the long term and envisions regional integration through connection to Mauritania and Senegal via the Africa Atlantic Gas Pipeline and leveraging synergies with green hydrogen and its by-products.
     

On April 23, 2025, Morocco’s Ministry of Energy Transition and Sustainable Development launched a call for expressions of interest to develop an integrated infrastructure for natural gas reception, storage, re-gasification, and transport, alongside a gas-fired power plant. The call for EOI provides for the launch of three procurement procedures, including: 
 

  • A procedure concerning the development of facilities necessary for the reception, storage, and regasification of LNG at the Nador West Med Port (the LNG Terminal Component) in accordance with applicable laws, including the Port Law;
     
  • A procedure concerning the development of the Nador Combined Cycle Gas Turbine (CCGT) project undertaken by ONEE under the independent power production (IPP) regime, in accordance with the ONEE Law (the CCGT Component); and
     
  • A procedure concerning the development of gas pipelines between, on the one hand, the LNG Terminal Component and the Maghreb Europe Gas (MEG) pipeline (ref A), and on the other hand, the MEG and the industrial zones and thermal power plants located in Kenitra and Mohammedia (the Gas Pipeline Component) in accordance with applicable laws, including the Law on Public Private Partnerships.

On July 14, 2023, the National Office of Electricity and Water (ONEE) signed a 12-year agreement with Shell International Trading Middle East Limited for the provision of 0.5 billion cubic meter (bcm) of liquified natural gas (LNG) annually. Under the deal, the LNG will be transported through the MEG until Morocco constructs its own LNG terminals. The supplied LNG will enable ONEE to operate two combined cycle gas turbines (CCGTs) in northern (384 MW) and eastern (452 MW) Morocco that previously relied on Algerian gas through the same pipeline. Morocco is a net energy importer and aims to diversify fuel supplies and reduce its dependence on foreign oil and coal. OHNYM offers attractive operating and investment terms to oil and gas exploration and production companies. For more information about exploration activities please visit The Office National des Hydrocarbures et des Mines (ONHYM).

Power to X

Due to its high renewable energy potential, in both solar and wind, and its geographical location between Europe and the rest of Africa–Morocco aspires to be a global leader in the industrial production, and export of green hydrogen and ammonia. Morocco was the first country in the region to adopt a National Strategy for Green Hydrogen, which it unveiled in 2021. The strategy includes a timeline spanning from 2020 to 2050 and identifies various steps toward possible applications of green hydrogen in the economy. In the short term (2020-2030) the focus is on both exports, mainly to Europe, and the use of green hydrogen as an industry feedstock. In the medium term (2030-2040), Morocco will focus on using green hydrogen as an energy storage vector to ensure grid stability, but also in public and heavy trucks transports. In the long term (2040-2050), the strategy foresees higher levels of exports and use in industrial heat, railway, maritime, and aviation transport, as well as passenger vehicles. The strategy has a goal to install 14.6 GW of extra renewable energy capacity through 2030 and 131.5 GW through 2050, outside of the electricity sector (currently around 11 GW), as well as an overall CAPEX to expand the green hydrogen sector in the country that may exceed $120 billion by 2050.

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