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: 2020-12-10

Overview

The renewable energy sector, just like many other industries, has been impacted by the COVID-19 global pandemic. Installers of solar equipment saw their activities drop dramatically and trade shows were canceled. However, the government has stayed focused on prioritizing Morocco’s renewable energy sector by improving the legislative and regulatory framework. The Ministry of Energy, Mines, and Environment has submitted an amendment to Law 13-09 to the General Secretariat of the Government. This amendment aims to improve the legislative and regulatory framework governing the activity of carrying out renewable energy projects by the private sector, while guaranteeing the security and viability of the national electricity system.

Morocco imports approximately 90% of its energy needs, according to the Moroccan Ministry of Energy.  The total primary energy consumption has increased by about 5% per year since 2004.  Per the state-owned power utility ONEE, Morocco’s electricity production derives from coal (31%), hydroelectricity (22%), fuel oil (25%), natural gas (10%), wind (10%), and solar (2%).

The national strategic objective is to increase supply security by reducing dependence on energy imports, including increasing the use of renewable sources for electricity production. Despite the challenging circumstances, renewable projects continued to improve amid the pandemic. Morocco succeeded to reach 42% of installed electrical generation capacity as planned for 2020.. By 2030, it is estimated that renewable energy sources will provide 52% of the total installed capacity. Morocco plans to decrease energy consumption by 15% by 2030 (from 2016 levels) through energy efficiency measures.

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

Opportunities

Solar Energy:  Morocco has an average solar potential of 5 kilowatt hours (kWh) per square meter per day, though this varies geographically.  The Moroccan Agency for Sustainable Energy (MASEN) had planned to reach installed capacity of both CSP and PV to at least 2,000 MW by 2020. This objective was met and slightly surpassed.

Wind Energy:  Morocco has a technical wind potential of slightly less than 5,000 terawatt hours (TWh) per year, with potential useful capacity of 25,000 MW, according to the Moroccan Agency for Energy Efficiency (AMEE).  The integrated Wind Energy Program adopted in 2010 aimed to attain total wind power capacity of 2,000 MW by 2020. This benchmark was met and a new goal of 52% of energy production from renewable resources (solar, wind and hydro) by 2030 was set.

Hydropower Energy: The existing hydro resources reached 1,770 MW 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, which will increase the hydro energy capacity of the site to 2,120 MW by 2021.

Energy Efficiency:  Morocco’s energy efficiency strategy was revised to include a greater efficiency target of 20% by 2030 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 97% of Morocco’s energy needs, according to the World Bank. The Ministry of Energy scaled down its $4.5 billion gas-to-power project to reflect the country’s changing needs and its substantial increase of solar and wind power production in the next decade’s energy mix, with LNG remaining an important element in the mix but scaled back as well. The LNG plans currently include four new combined-cycle gas turbine power plants, each with a capacity of 600 MW, an LNG import terminal and onshore regasification unit at the Port of Jorf Lasfar on the Atlantic coast, as well as pipelines connecting the terminal to the Maghreb-Europe pipeline in the north of the country.  The Moroccan government plans to create a national gas logistics company to make the state a key stakeholder in the new gas sector strategy. Morocco is a net energy importer and is trying to diversify fuel supplies and reduce its dependence on foreign oil and coal.

The country’s national office for managing hydrocarbon resources, “l’Office Nationale des Hydrocarbures et des Mines” (OHNYM), offers attractive operating and investment terms to oil and gas exploration and production companies. For more information about exploration activities please visit http://www.onhym.com/en/exploration-activity.html

Power to X: Power-to-X conversion technologies allow for the decoupling of power from the electricity sector for use in other sectors.  With its geographic position and outstanding wind and solar capacity, Morocco is able to achieve a valuable share of the ‘Power-to-X’ market, expected to be between 2% and 4% of global production in 2030.  The X in the terminology refers to one of the following: power-to-ammonia, power-to-chemicals, power-to-fuel, power-to-gas, power-to-heat, power-to-hydrogen, power-to-liquid, power-to-methane, power-to-mobility, power to food, power-to-power, and power-to-syngas. In this sense, “green ammonia” will provide Morocco with opportunities to fulfil the long-term demands of its local fertilizer industry and foreign market.  The government has also set the objective of becoming a net hydrogen exporter through the production of “green” hydrogen from renewable power and desalinated seawater.

Web 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)