Casablanca – Morocco is making significant strides to enhance its energy resilience and transition to a sustainable energy future. The Ministry of Energy Transition and Sustainable Development has announced key projects aimed at increasing petroleum storage capacity, bolstering renewable energy production, and driving down electricity costs, setting the stage for long-term energy security and economic growth.
Petroleum storage expansion to strengthen energy security
Minister Leila Benali revealed an ambitious plan to expand the country’s petroleum storage capacity by 1.8 million cubic meters by 2030. This increase, equivalent to an additional 41 days’ worth of national consumption, aims to ensure Morocco’s energy security in the face of growing demand. The total investment for this project is estimated at $515 million, supported by private sector partnerships.
The initiative is projected to generate significant employment opportunities, creating more than 3,600 direct jobs and thousands of indirect positions, according to the minister. This development underscores Morocco’s strategy of leveraging public-private collaborations to address critical energy challenges.
Renewable energy milestones and progress
Morocco has made notable advancements in renewable energy, positioning itself as a regional leader in clean energy production. By the end of August 2024, the country’s renewable electricity generation capacity had reached 5,300 megawatts, reflecting a 7.3% growth during the current government’s term.
For the first time, wind energy surpassed hydropower in electricity production, marking a significant shift in Morocco’s energy mix. Renewable energy now accounts for 20% of the national electricity demand, showcasing the country’s progress in diversifying its energy sources.
During the first half of the current administration’s tenure, the ministry approved private sector projects with a total renewable energy capacity exceeding 2 gigawatts. This represents the largest capacity ever authorized by the ministry, reflecting an unprecedented scale of renewable energy adoption.
Cutting costs through competitive investments
One of the most critical achievements highlighted by Minister Benali is the reduction in electricity production costs. Renewable energy, including advanced battery storage systems, is now produced at a cost of less than $0.04 per kilowatt-hour. This reduction positions Morocco as a competitive player in the global clean energy market and underscores the impact of energy sector reforms.
The scale of investment in renewable energy has increased fivefold. Before 2021, annual investments in the sector averaged $361 million. After 2023, this figure skyrocketed to $1.55 billion annually. Looking ahead, Morocco has allocated $3.1 billion for planned renewable energy projects, including the development of a high-capacity 3-gigawatt electrical interconnection line linking the southern and central regions.
Regulatory reforms to accelerate the energy transition
The Moroccan government has introduced several regulatory measures to support its energy transition goals. Among them are:
- Mandatory Smart Meters: Designed to improve grid efficiency and integrate renewable energy sources seamlessly.
- Certificates of Origin for Renewable Electricity: These certifications will ensure the traceability of green energy and align Morocco with international standards.
- Support for Energy Service Companies: These firms will play a key role in implementing energy-saving measures and optimizing equipment performance.
Broader impacts on sustainability and economic growth
These initiatives demonstrate Morocco’s commitment to sustainability and its determination to reduce reliance on fossil fuels. The energy sector’s transformation is not only addressing environmental concerns but also contributing to economic development by creating jobs and fostering investment.
Minister Benali emphasized that these efforts align with Morocco’s broader strategy of achieving energy independence and meeting rising energy demands sustainably. By prioritizing innovation and competitive investments, Morocco aims to cement its position as a leader in renewable energy within Africa and beyond.
As Morocco moves toward 2030, its energy policies are set to deliver tangible benefits for its economy and environment. From expanding petroleum storage capacity to driving renewable energy growth and implementing forward-thinking regulations, Morocco’s approach exemplifies a balanced and strategic energy transition. These developments position the country as a model for sustainable energy development in the region and a proactive player on the global energy stage.
