Morocco's energy diversification
Morocco's energy diversification strategy is primarily driven by its lack of substantial fossil fuel reserves, making it heavily reliant on foreign energy imports. As of 2021, the country imported over 91% of its energy, positioning it as Africa's largest energy importer. In response to growing energy demands, which are expected to triple or quadruple by 2030, Morocco is focusing on renewable energy sources such as solar, wind, and hydropower. The government initiated a new energy strategy in 2008, aiming to increase the share of renewable electricity significantly.
Despite experiencing a 106% increase in electricity generated from renewables between 2000 and 2020, renewable energy's share in total energy consumption declined by 8% in the same period. Wind power has emerged as a leading contributor, accounting for 62.7% of the nation's renewable generation, while solar thermal and hydroelectric power contribute 15.8% and 14.9%, respectively. Morocco is also actively integrating its electrical grid with European markets, which not only enhances energy security but attracts foreign investment. The trend toward distributed energy generation is growing, particularly with solar thermal systems, as the public increasingly views renewable energy as a safer and more economical alternative.
Morocco's energy diversification
Official Name: Kingdom of Morocco.
Summary: Morocco is heavily dependent on foreign sources of energy and lacks a domestic supply of traditional energy sources. The country is diversifying its energy matrix by developing renewable sources such as solar energy, hydropower, and wind.
Morocco is the only country in north Africa that does not have substantial fossil fuel reserves. Unlike its neighbors Algeria and Mauritania, who have large oil and gas reserves, Morocco must rely on foreign imports of energy. In 2021, Morocco imported more than 91 percent of its energy, making it the largest energy importer in Africa and economically sensitive to energy prices of the global market. Although the country lacks traditional sources of energy, it has a large, underdeveloped potential for renewable energy. In 2008, the government enacted a new energy strategy with a focus on developing renewables as a way to continue broader development.
In the 2000s, Morocco had an emerging economy that experienced steady growth of 4 to 5 percent between 2000 and 2010. In 2021, it experienced a real growth rate of gross domestic product (GDP) of 8 percent. As the economy grew, Morocco became more dependent on foreign sources of energy, with continual growth in imports of crude oil, petroleum products, coal, and electricity. Forecasts by the Moroccan government predicted that primary energy demands could increase three to four times by 2030. This growth presented a challenge to the government because power production was insufficient to meet demand, leaving Morocco to rely on electricity importation through interconnections with Spain and Algeria.
Growth of Demand and Rising Costs
In Morocco, there is a large difference between the growth of energy demand and rising energy costs. In order to maintain reasonable energy prices for consumers, the government subsidizes the costs of commodities such as crude oil, which levels out prices for the end consumer. However, this policy results in the government’s absorbing the rising costs of energy, putting a strain on the developing country’s budget.
These energy constraints and challenges have pushed the government to evaluate how the country produces and uses energy. Energy policy was restructured with a series of energy laws passed between 2007 and 2009. These laws made the mission of the Ministry of Energy, Mines, Water, and Environment to diversify energy sources, improve energy security, and lead in energy integration with European and Mediterranean markets.
Wind power, hydropower, and solar energy potentials are high in Morocco. The country could significantly increase its electricity-generation capacity with the appropriate policy framework, financing mechanisms, knowledge transfer, and infrastructure development. For example, a major change in Morocco’s energy policy leading to more power generation is the liberalization of the electricity market. The state-owned power company, the Office National de l’Électricité (ONE), traditionally controlled the electrical sector. Although ONE continues to have sole responsibility for distribution and transmission of electricity, the generation is open for the private sector. Liberalization of the energy economy is therefore leading to more private-sector investment and a growth in renewable energies.
Projects under development were meant to increase the share of renewable electricity from 10 percent in 2007 to 42 percent installed capacity by 2020. However, renewable energy in Morocco's energy consumption actually decreased by 8 percent from 2000 to 2020. The nation did see a 106 percent increase in electricity generated from renewables over that same time period.
In 2021, wind power provided 62.7 percent of the nation’s renewable electricity generation. Most of Morocco has good wind potential, with many places having 32-feet-per-second (10-meter-per-second) or higher prevailing winds, making the country attractive for development. In 2018, Morocco generated 3.8 terawatt hours of wind power, making it the second-largest wind producer in Africa. Solar-thermal power accounted for 15.8 percent of the nation’s renewable electricity generation, while hydroelectric power accounted for 14.9.
Energy Integration
Energy integration was a high priority for Morocco, which was working on integrating the Moroccan grid with European and Mediterranean markets. Morocco was the only country in Africa with an electrical grid connected to Europe in the late 2010s. Since that time, several other North African nations have been connected to European energy. Given Europe’s land constraints, importing renewable energy from North Africa will be necessary if Europe was to reach the goal of having 100 percent of its electricity generated by renewable sources by 2050. Morocco was capitalizing on this and attracting foreign investment through expansion of energy integration between Morocco and Europe.
The urban market for distributed energy generation is rising in Morocco as well, with the growing adoptions of solar thermal and solar photovoltaic systems. Most thermal energy demands are met through liquefied petroleum gas (LPG), which is distributed through portable canisters given the lack of infrastructure supporting gas service lines. Morocco is poised to leapfrog across gas technologies, however, with an increasing demand for solar thermal installations on rooftops. The popularity of solar thermal power is spreading with the public’s perception of this energy source as a safer and more economical alternative to more traditional sources.
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