Casablanca – In a significant step toward securing long-term water and energy sovereignty, Morocco has launched an integrated infrastructure program valued at approximately $13.4 billion. The initiative—one of the most ambitious of its kind in the region—aims to overhaul the country’s water management and electricity systems through a strategic partnership between public and private stakeholders.

The project brings together TAQA Morocco, Nareva, the National Office for Electricity and Drinking Water (ONEE), and the Mohammed VI Investment Fund, in collaboration with the Moroccan government. This alliance is a direct extension of the joint declaration signed in December 2023 between King Mohammed VI and UAE President Sheikh Mohamed bin Zayed Al Nahyan, which outlined joint priorities for sustainable development, including in the water and energy sectors.

Integrated infrastructure development

The multi-sector plan will deliver large-scale investments in renewable energy, seawater desalination, electricity transmission, and water transfer infrastructure. These efforts are designed to reinforce Morocco’s resilience against climate change, rising electricity demand, and growing water scarcity.

Among the key components of the program:

  • Expansion of desalination capacity: New desalination plants, powered by renewable energy, will deliver an additional 900 million cubic meters of potable water annually—significantly enhancing Morocco’s water supply security.
  • Water transfer infrastructure: The so-called “Water Highway” project will enable the transport of 800 million cubic meters of water from the south to central regions, addressing regional imbalances in water availability.
  • Energy generation and grid modernization: The plan includes 1,200 MW of new renewable energy capacity, alongside flexible, low-carbon power plants using natural gas. A new 3,000 MW high-voltage direct current (HVDC) line will connect the southern and central regions, improving grid stability and enabling higher renewable energy integration.
  • Gas infrastructure expansion: The Tahaddart gas-fired power plant (400 MW), currently inactive, will be restarted and expanded with an additional 1,100 MW through combined-cycle gas turbine (CCGT) technology to support consistent electricity generation.

Ownership and financing model

Under the agreement, TAQA Morocco and Nareva will each hold equal stakes in all projects, while the Mohammed VI Investment Fund and other public entities will retain a 15% minority share. This structure is intended to ensure both strategic oversight and operational efficiency, combining government direction with private-sector execution.

The financing model leverages public-private partnerships (PPPs) and long-term energy purchase agreements, particularly with ONEE, to secure returns and support reinvestment in infrastructure over time.

Strategic and environmental alignment

This development program forms part of Morocco’s broader national roadmaps for water and energy, which emphasize environmental sustainability, economic competitiveness, and climate resilience. By combining clean energy generation with water security solutions, the initiative seeks to address two of the most pressing challenges facing the kingdom.

The desalination facilities, in particular, are designed to reduce Morocco’s dependence on traditional freshwater sources while supporting population growth and agricultural needs. At the same time, investments in renewables and natural gas aim to diversify the country’s energy mix and reduce carbon emissions, while improving supply reliability.

Implementation timeline and market response

Given the urgency of climate-related challenges, the program is expected to follow an accelerated development timeline, with all major infrastructure components scheduled for delivery by 2030. The scale and speed of the initiative underscore Morocco’s intent to position itself as a regional leader in sustainable infrastructure and clean energy innovation.

In response to the investment announcement, the Casablanca Stock Exchange temporarily suspended trading of TAQA Morocco shares on Monday. This standard measure ensures transparency and prevents market imbalances during the dissemination of major corporate disclosures.

A new phase for Morocco’s development agenda

As global challenges intensify around water access and energy transition, Morocco’s new investment strategy signals a forward-looking approach anchored in sustainability and cross-sector cooperation. By mobilizing $13.4 billion in capital and forging strong partnerships between government institutions and private firms, the kingdom is laying the groundwork for a more resilient, secure, and low-carbon future.