Demand for electricity in Morocco has increased in recent years as a consequence of steady improvement. Estimates suggest that the country’s installed generation capacity will need to be tripled to be able to meet increasing demand, which has expanded by an estimated 6-7% annually in the last few decades. The main challenge lies in deciding how to increase electricity supply and reduce reliance on electricity imports.In 2008 an energy strategy that emphasised reduction of energy imports through the creation of renewable energy was adopted by the kingdom.
The government aims to create an extra 10 GW of installed renewable capacity to satisfy with the goal to generate 52% of energy from renewable sources by 2030. Because of this, many opportunities for investment are emerging, even though a variety of obstacles remain for the segment.GOVERNMENT GOAL: As stated by this Moroccan-German Energy Partnership (Partenariat Energé- tique Maroco-Allemand, PAREMA), a stage for institutional vitality policy dialogue between the two nations, the kingdom installed production capacity reached 8154 MW in 2015, of which coal accounted for 31 percent, followed by gasoline with 25.8 percent, hydroelectricity with 22 percent, fuel and petrol with 10 percent, and wind with 9.4%. The government aims to increase total capacity by 2020 to 15,946 MW, 20,070 MW by 2025 and 24,800 MW by 2030.Renewable energy represented 34 percent of installed generation capacity.
The government plans to boost this to 42 percent in 2020, 47% in 2025 and 52 percent in 2030. To attain these targets, the kingdom has unveiled a investment plan for the energy sector — also is likely to add just by 2030 — 4200 MW from wind 4560 MW from solar energy and 1330 MW out of hydroelectricity.
The plan, which spans the 2016-30 period, will need roughly $40bn of funding, of which electricity generation derived from renewable resources will account for $30bn, or 75 percent of the total. The kingdom intends to reduce consumption by 20.SOLAR POWER: The Moroccan Agency for Sustainable Energy (MASEN) — called the Moroccan Agency for Solar Energy prior to its renaming in September 2016 — is in charge of implementing the Moroccan Solar Energy Programme, which was launched in November 2009 and was rebranded as the Noor Solar Plan to reflect the adoption of the 2030 goal. Generate around 4500 GWh annually, and the solar energy programme sought to add 2000 MW of power by 2020 ; nonetheless, as a result of the revision of renewable energy contributions to the energy mix, projections are adjusted.
“The decision to concentrate on renewables arrived in 2009, when demand for energy was increasing by 5-6percent per year and oil prices plummeted and natural gas was virtually inaccessible,” Anas Raisuni Perez, country manager at technology and engineering company SENER Group, told OBG. “With solar energy generation being cheaper than fuel production, renewables consequently constituted the apt solution.”CONCENTRATED SOLAR POWER: MASEN is in charge of solar energy projects, such as Noor I, II and III. Even though it’s more expensive than photovoltaic technology, concentrated solar energy holds other benefits, especially the ability to store energy, which allows authorities to manage peak demand and ensure stable supply.The 160-MW Noor I inaugurated in February 2016, is Morocco’s main power project’s first phase. Situated in Ouarzazate, 500,000 mirrors are comprised by the centre. It has the capacity to save up to 3 hours of energy, also may generate an estimated 500 GWh each year.
The stage of the project comprises both Noor II and III, which can be scheduled to emerge in 2018. The expense of the Noor complicated is estimated at $9bn, and the capacity will reach 580 MW, which will have the ability to supply around families. Saudi Arabian developer ACWA Power led the consortium in charge of bringing Noor I right into performance. The company has won bids to develop Noor II, III and IV. Upon its completion, Noor will be one of the largest-capacity solar power plants in the world, second only to Kamuthi in India, with a 648-MW capacity.
VENTURING INTO PHOTOVOLTAIC: After initiating a number of concentrated solar energy jobs, MASEN has become photovoltaic technology, applying it to several projects, in addition to other projects, which united concentrated solar power with photovoltaic technology.In November 2016 a contract was awarded by MASEN to ACWA Power for the construction of a energy complex. In late 2016 the bureau opened a bidding for two 400-MW joint solar plants in 2017. MASEN had launched a call for expressions of interest from the 400 MW, to be developed in the Noor Midelt energy complex. Construction on the project’s first phase started in mid-2017.ONEE PROJECTS: The National Office for Electricity and Potable Water (Office National de l’Electricité et de l’Eau Potable, ONEE) is in charge of three more solar energy projects, such as Noor Tafilalet (120 MW), Noor Atlas (200 MW) and Noor Argana ( 200-225 MW), which have a combined installed capacity in excess of 500 MW. Noor Tafilalet consists to be found in Missour, Erfoud and Zagora, each with a 40-MW capacity.In November 2016 ONEE explained that 11 bidders, composed of five companies and six consortia, were pre-qualified. The project is anticipated to cost $158m and be operational. Pre-qualification tenders for Noor Atlas and Noor Argana jobs are anticipated to start in 2017. According to local media, Noor Atlas is anticipated to cost $300m, while $250m will be required by Noor Argana. While an extra 720 MW was under development in 2011 Morocco had a total installed wind power capacity of 289 MW and a further 1000 MW was being planned. As illustrated by previous successes — such as the Tarfaya wind farm project, the largest such initiative there is potential for the development of the segment.
Operational since 2015, the centre cost $478m and was built by a 50:50 joint venture between Moroccan company Nareva Holding and also France’s Engie beneath a contract. The facility provides power to approximately 1.5m families.Awarded or ongoing projects include the building of five wind farms with a capacity of 850 MW with a consortium composed of Enel Green Power Nareva and Siemens Wind Power. The wind turbines, which together are estimated to cost Dh12bn ($1.1bn), will be located in Tangiers (100 MW), Tiskrad (300 MW), Jbel Lahdid (200 MW), Boujdour (100 MW) and Midelt (150 MW). These projects will be developed under models since public-private partnerships. The facilities are set to become operational by 2020.HYDROPOWER: As 2017 Morocco had 1770 MW of production capacity that is installed, based on PAREMA.
Different jobs are also under construction or at the planning phase. ONEE has recognized 125 sites suitable to come up with little or micro-sized power channels (with 100-1500 KW), for a entire capacity of approximately 300 MW. PAREMA estimates suggest capacity derived from hydropower stations will grow by 2030 to 3 GW.ONEE is currently investing in the development of pumped storage power station jobs; at Morocco the prospect of these plants is projected at roughly 6. Very similar to solar power, pumped storage power stations allow for the storage of energy. At present, the kingdom has pumped storage power station, which located north-east of Marrakech is located in Afourer, and has a capacity of 460 MW. There are plans to develop an extra 1330 MW of hydropower from 2030. Vinci Construction acquired a contract to construct Abdelmoumem, which is likely to be finished at the end of 2020.
ONEE planned to launch calls for tenders on research, as well as studies, for both El Menzel II and Ifahsa throughout 2017, but no additional news was available as of ancient 2018.While the state is still the main player in large scale hydroelectricity projects, private investment is also growing. Platinum Power received authorisation to construct three power stations. That is Morocco hydroelectricity power endeavor that is private.LEGISLATIVE CHANGE: The growth of renewable energy has brought opportunities that are significant but barriers to investment persist. 2 pieces of legislation — Laws No. 16-08 and 13-09 — have helped raise investment, allowing personal generation and production of energy via renewable sources for either private use or the sale of surplus output to the grid.
“There’s been an fantastic response to Law No. 13-09, which enables private manufacturers to meet the needs of industrial clients. However, the legislation requires several alterations to streamline the implementation process of these investments,” Badis Derradji, state manager of ACWA Power, told OBG.Although high- and very-high-voltage grids are available to manufacturers of renewable energy, low- and medium-voltage grids remain effectively closed to them. According to local reports, the link to medium-voltage grids for private energy manufacturers, while embraced on paper, still requires the acceptance of a decree from the ministries of the interior and electricity.The opening of low-voltage grids is defined under Law No. 58-15, but by-laws have to be approved before this section’s potential could be met, benefitting small and medium-sized enterprises (SMEs) and residential consumers, instead of industrial players, which may already access large – and – very-high-voltage grids.SME OPPORTUNITIES: Many projects developed so far have been big in dimension, and few SMEs are involved.
Subcontracting provides chances for expansion in the part of companies that are smaller, and is set to accelerate as market liberalisation progress. “SMEs have yet to gain from the creation of renewable energies in Morocco; but some segments are already well positioned to take advantage of the boom from renewables, like companies creating metallic structures to be embedded in solar panels,” Touria Barradi, vice-president of the Association des Centraliens et Supélec du Maroc, a regional alumni association, told OBG. “Moving forward, Morocco has sufficient capacity and competencies to extend the value chain, especially in electronic equipment, in addition to control and monitoring devices.”There is potential for export growth.
Morocco’s geographic place — combined with demand for content in contracts — has resulted in foreign currency in this section, leading to the creation of jobs and the development of the country as an export platform. For instance, Siemens announced in March 2016 it was investing in a wind blade factory in Tangiers, describing the nation as a perfect platform to provide not only the local marketplace, but also the growing onshore wind power markets of Africa, the Middle East and Europe.