Morocco’s ambitious renewable energy strategy, coupled with its abundant sunshine, is firmly establishing the Kingdom as a leading solar energy hub in North Africa.
This burgeoning sector is drawing substantial investments, totaling billions of dollars, from key players in Saudi Arabia and the United Arab Emirates.
A recent report by the London-based think tank, the Bourse & Bazaar Foundation, highlights that Saudi Arabia’s Public Investment Fund (PIF), along with Emirati sovereign wealth funds like Mubadala, and companies such as Dubai’s AMEA Power, are making significant investments in solar energy projects across Morocco, as well as in Egypt and Jordan. The report specifically emphasizes Morocco’s robust and credible green energy strategy as a key differentiator.
Rabat has set an ambitious target to meet 52 percent of its energy demands through renewable sources by the year 2030. Within this strategy, solar power capacity is projected to grow significantly, increasing from 2.7 GW in 2027 to nearly 3 GW by 2028. The Noor Ouarzazate power plant (580 megawatts), a flagship project partly developed with Saudi Arabia’s ACWA Power, stands as a powerful symbol of this commitment. Numerous other projects are currently underway, including AMEA Power’s developments in Taroudant, Tangier, and El Hajeb. Furthermore, Abu Dhabi’s Masdar is collaborating with Morocco’s ONEE to provide solar energy to approximately 19,000 households.
The Moroccan Agency for Sustainable Energy (MASEN) plays a crucial role in facilitating foreign investment by streamlining access to necessary permits and land. Large-scale initiatives like the ambitious X-links project, which aims to transmit Moroccan-generated electricity to the United Kingdom via an undersea cable, further enhance the nation’s appeal to international investors.
Despite the significant progress, the report also identifies existing challenges. Moroccan legislation mandates the employment of local workers, even in highly specialized technical roles, which can sometimes complicate the recruitment process. Additionally, the requirement to utilize locally manufactured solar panels could potentially lead to delays in equipment procurement.
The think tank suggests that while these measures are intended to stimulate the national economy, they could inadvertently slow down certain investments in the long term. The report recommends targeted easing of these regulations to allow Morocco to maintain its competitive edge in the renewable energy sector.
A key advantage for investors remains the significantly lower cost of electricity production in Morocco compared to the Gulf countries. This, combined with competitive labor costs and economies of scale, further strengthens the financial attractiveness of solar energy projects within the Kingdom.
MK/te/Sf/fss/abj/APA