Morocco bets big on renewables

Morocco is accelerating efforts to modernize its electricity grid as part of a broader strategy to integrate 12.5 GW of new renewable energy capacity by 2030.

Last week, the World Bank approved a procurement plan for a pilot battery storage project in the country—an essential step toward large-scale deployment of energy storage systems. 

This initiative reflects Morocco’s growing commitment to enhancing the reliability and flexibility of its grid in the face of expanding renewable generation.

The National Office of Electricity and Drinking Water (ONEE) is playing a key role in this transition. In April, the state utility presented a 220 billion dirham (approximately USD 24 billion) investment plan, which has now secured EUR 300 million (about USD 341 million) in funding from the European Investment Bank, Germany’s KfW Development Bank, and the European Union.

The funds will support the expansion of the electricity transmission network by more than 730 kilometers. Beyond infrastructure upgrades, the investment aims to improve energy security—crucial for stimulating regional economic growth across the country.

Currently, Morocco has about 4.6 GW of installed renewable energy capacity. 

Reaching the 17 GW target by 2030 will require a grid capable of managing intermittent generation from remote areas, without compromising stability or increasing costs.

Modernizing the grid is vital not only for the viability of energy projects but also for securing industrial electricity supplies and strengthening Morocco’s appeal to investors in energy-intensive sectors.

In a related development, three memorandums of understanding were signed last week between the government, ONEE, and a consortium made up of the Mohammed VI Investment Fund, TAQA Morocco (a subsidiary of the UAE-based TAQA Group), and local energy firm Nareva. 

Although non-binding for now, the agreements outline plans to construct a 1,400-kilometer high-voltage direct current (HVDC) transmission line between southern and central Morocco. This line would have a capacity of 3,000 MW and is slated for completion by 2030.