Morocco - Country Commercial Guide
Energy

This is a best prospect industry sector for this country. Includes a market overview and trade data.

Last published date: 2021-10-21

Overview

Morocco’s energy sector depends heavily on imported hydrocarbons. Currently, the country imports approximately 90 percent of its energy needs.  The total primary energy consumption has increased by about 5 percent per year since 2004, but Morocco plans to decrease energy consumption by 15 percent from 2016 levels by 2030 through energy efficiency measures.  Per the state-owned power utility ONEE, Morocco’s electricity production in 2019 came from coal (38 percent), hydroelectricity (16 percent), fuel oil (8 percent), natural gas (18 percent), wind (11 percent), and solar (7 percent), others (2 percent).

The Government of Morocco seeks to increase security of supply  by reducing dependence on energy imports, including through the increase of  renewable sources for electricity production.   The pandemic, however, continues to disrupt the renewable energy sector.  Installers of solar equipment saw their activities drop dramatically and trade shows were canceled.  As of the end of 2020, the share of renewable energy in the electrical capacity mix stood at 37 percent, below the government’s Paris Agreement target of 42 percent. However, the government of Morocco is confident that renewable energy sources will provide 52 percent of the total installed capacity by 2030. Renewable energy projects are supported through the Moroccan Agency for Sustainable Energy (MASEN)’s 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 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).

Growth of the Moroccan renewable energy sector is a top priority for the Moroccan government. The Ministry of Energy, Mines, and Environment has submitted an amendment to Law 13-09 on Renewable Energy and Law 16-08 on Self-Generation to the General Secretariat of the Government. 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]

Opportunities

Solar Energy

Morocco has an average solar potential of 5 kilowatt hours (kWh) per square meter per day, though this varies geographically.  Total installed capacity from solar energy currently stands at 711 MW.

Wind Energy

According to the Ministry of Energy, Mines and Sustainable Development, Morocco could potentially generate 25,000 MW of wind power. At present, Morocco has an installed capacity from wind energy of 1220 MW, the second largest volume in Africa behind South Africa.  ONEE  is targeting an installed capacity of 10 GW of renewable energy by 2030, with 4.5 from solar, 4.1 from wind and 1.3 from hydropower.

Hydropower Energy

The existing hydro resources reached 1,770 MW of total capacity installed by March 2020. ONEE has started the construction of a Pumped Energy Transfer Station (PETS) of 350 MW at the Abdelmoumen site in the Agadir region. 

Total installed capacity from renewable energy sources stands at 3950 MW, corresponding to 37 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.

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, construction, industry, agriculture, and public lighting. 

Fossil Fuels:  Imported fossil fuels including refined oil, gas, and coal, currently 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).  In May 2021, the Moroccan Office of Hydrocarbons and Mines (ONHYM) launched a call for expression of interest for development and operation of an integrated FSRU terminal off the Atlantic coast.  ONHYM will launch a call for tenders or a Public Private Partnership (PPP) in the future.  The initial scope of the FSRU project in Morocco is for an annual requirement of 1.1 bcm by 2025 rising to 1.7 bcm in 2030 and 3 bcm in 2040.

In August 2021, the Moroccan Ministry of Energy, Mines, and the Environment announced a new national roadmap for the development of natural gas 2021-2050. The roadmap lays the groundwork for the development of natural gas for industrial needs initially, followed by domestic needs, while continuing its development to integrate electricity generation needs. The first step in this roadmap would be to put in place a regulatory framework for the natural gas sector. The second step is related to the assessment of demand through the evolution of current consumption and that of recent years, as well as the potential for future demand. The third stage, it would be a question of evaluating the various options for supplying natural gas and liquefied natural gas (LNG), in particular by gas pipelines, floating storage and regasification units, on shore terminals or even multidirectional flows, while deploying a new transport network in order to link all the components of the gas plan and to develop own capacities for the reception and storage of natural gas and LNG for reasons of security of supply. 

Morocco is a net energy importer and is trying 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 this link http://www.onhym.com/en/exploration-activity.html

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 plans to be a leader in the production of green fuels for domestic use and export through the Power to X concept, particularly through the production of green hydrogen.  The Ministry of Energy estimates that Morocco will be able to achieve a valuable share of the green hydrogen market, between 2 percent and 4 percent of global production by 2030.  In addition, as one of the largest importers of ammonia in the world, Morocco endeavors to be a leader in the production of ammonia using renewable energy - green ammonia. Fulfilling long-term demands of its domestic and export fertilizer industry. 

Resources

  • Moroccan Ministry of Energy, Mining, and Sustainable Development
  • National Office of Electricity and Water (ONEE)
  • National Federation of Electricity and Renewable Energies (FENELEC)
  • Research Institute for Solar Energy and New Energies (IRESEN)
  • Solar Cluster
  • Moroccan Agency for Solar Energy (MASEN) E-Tenders
  • Moroccan Agency for Energy Efficiency (AMEE)
  • Company for Energy Investments (SIE)
  • Moroccan Office of Hydrocarbons and Mines  (ONHYM)