From Zakia Abdel Nabi

RABAT, Jan 28 (Reuters) - In recent years, Morocco has turned to boosting investment in alternative energy sources in an effort to reduce its near-total dependence on fossil fuels, as it imports most of its energy needs, putting pressure on the trade balance and raising the energy bill.

This energy bill reached approximately 114 billion dirhams ($12.2 billion) in 2024 and nearly 99 billion dirhams in 2025, prompting the country to accelerate its efforts to reduce this dependence. In 2024 and 2025, Morocco made significant progress in renewable energy, reaching a production capacity of 5.6 gigawatts, making it one of the most advanced countries in this sector in Africa.

Energy sovereignty

The Moroccan government said it has increased the share of renewable energies in the energy mix by more than nine percent to make up more than 46 percent in 2025.

Leila Benali, the Moroccan Minister of Energy Transition and Sustainable Development, told parliament last December that in 2023, "we tripled investments in renewable energies annually, and quintupled investments in the electricity grid that enables us to absorb clean energy."

Morocco has quadrupled private investment in renewable energy, reaching 29 billion dirhams (approximately $3.1 billion) since 2021, compared to 20.8 billion dirhams during the previous decade.

The country aims to increase the share of renewable energy to 52 percent of its electricity mix by 2030.

Morocco began its journey towards clean energy in 2009 by investing in its natural resources, especially solar and wind energy. The Noor plant was launched in Ouarzazate in the south of the country, which is the largest concentrated solar power facility in the world with a total production capacity of about 580 megawatts.

He also sought to establish other solar power plants, including the Noor Midelt project in the center of the country, but work has not yet begun.

Morocco has increased its solar power production capacity to 831 megawatts, although the initial plan aimed to reach 2,000 megawatts in 2020, but technical problems have hampered implementation, according to sources who spoke to Reuters.

The number of renewable energy projects in Morocco that have been completed or are under development up to 2025 has reached about 111 projects with a total installed capacity of 3950 megawatts, including 1430 megawatts of solar and wind energy, and 1770 megawatts of hydroelectric energy.

Despite the expansion of wind power plants, coal-fired power plants still account for the largest share of electricity production. The country's plan aims to phase out coal-fired power generation by 2040. In 2023, Morocco joined the Alliance for the Phase-out of Coal Power Generation, which includes some 60 countries.

Infrastructure challenges

"Despite the progress made, there are still many challenges facing Morocco in exploiting and using alternative energies," development economist Sami Amin told Reuters.

He explained that "the network and flexibility" are at the top of these challenges and "it is not just about building stations... Morocco is rapidly expanding renewable energy production, but this requires a stronger transmission network with flexible storage," stressing the importance of investing in upgrading the electricity grid.

He added that "every additional megawatt of solar or wind power could become an unutilized surplus during peak hours unless sufficient storage flexibility is available," and considered that the energy transition is not just an environmental issue but "a matter of economic sovereignty and reducing the drain on hard currency."

He noted that in 2022, energy imports reached 94 percent, according to the International Renewable Energy Agency.

* Electrical interconnection and regional integration

Morocco places electrical interconnection among its strategic priorities and has recently achieved successes in this field, most notably the electrical interconnection line with Spain.

Morocco made available to Spain the use of 38 percent of its electricity production capacity to help restore power during the widespread blackout it experienced in April of last year.

In February of last year, it signed an agreement for electrical interconnection with Mauritania with the aim of creating an electricity grid linking West Africa to Europe, and is also working on an interconnection project with Portugal with a budget of approximately $437 million.

The government views strengthening energy interconnection and developing renewable energy as part of a broader vision for regional integration. Sami Amine stated that "alternative energy in Morocco is a matter of national sovereignty before it is an electricity project, as it aims to protect the economy from market fluctuations and transform energy into a strategic asset that can be priced, financed, and mortgaged."

He added, "Whoever has cheaper and more stable electricity wins in industry, exports, data, and hydrogen, and therefore we are talking about competitive dominance."

Green hydrogen

Morocco plans to produce three million tons of green hydrogen annually by 2030, targeting four percent of global demand. In 2024, it signed a partnership with Germany to produce approximately 10,000 tons of hydrogen per year, enough to produce 50,000 tons of steel using clean energy.

According to data from the International Gas Union, the cost of producing green hydrogen in Morocco is about $4.6 per kilogram.

Omar El Menkashi, a Moroccan university professor and expert in green hydrogen, told Reuters that Morocco needs to accelerate storage solutions and convert renewable energy into green hydrogen, considering it a key step to enhance energy security.

He added that the country possesses important assets, including natural resources and a strategic vision, but it needs to focus on developing industries related to clean energy, supporting scientific research, strengthening infrastructure, and diversifying partnerships.

He pointed out that the biggest challenge lies in "human capital and local innovation," stressing the need to invest in training specialized technical talents in the fields of hydrogen storage and green ammonia.