Accelerating Energy Transition: New Projects and Investments in Renewable Energy in Morocco

2023-08-22 20:12:00

The Minister of Energy Transition and Sustainable Development, Leila Benali, affirmed that the energy transition plays a crucial role in providing clean and competitive energy to the national economy, taking advantage of renewable energy sources. She highlighted a set of projects already operational and being deployed, totaling a capacity of around 4.6 gigawatts, with an investment of around 55 billion dirhams.

In response to a written parliamentary question, Benali explained that during the period 2021-2023, an additional capacity of approximately 203 megawatts was integrated into the network from renewable sources. In addition, the ministry granted authorization for several new projects with a total capacity of about 1,000 megawatts, marking the largest capacity granted in a single year.

The government official unveiled the development of a plan to strengthen the electricity network, pending approval by the Board of Directors of the National Office of Electricity and Drinking Water. This initiative is intended to further accelerate the realization of renewable energy projects. She added that nearly 1.3 gigawatts will be deployed each year during the 2023-2027 period, compared to only 0.16 gigawatts per year between 2009 and 2022.

The Minister for Energy Transition has announced a more than threefold increase in investment in renewable energies, going from around 4 billion dirhams per year between 2009 and 2022 to an annual average of 14 billion dirhams between 2023 and 2027. She highlighted the central role of the electricity transmission network to catalyze the kingdom’s energy transition, underlining the ministry’s particular attention to the strengthening and development of this infrastructure.

In addition, the minister reported the launch of a project aimed at providing clean and competitive electrical energy to all industrial areas. Two projects have obtained authorization to supply 150 megawatts respectively to the industrial zones of Kenitra and Tangier.

On the legislative and legal level, the government official announced the adoption of two laws this year: Law No. 40.19 which modifies and supplements Law No. 13.09 on renewable energies, as well as Law No. 82.21 on the production self-consumed electrical energy. These laws aim to facilitate the access of citizens, including homeowners and small and medium-sized businesses, to low-cost renewable energy and better management of their energy consumption.

Regarding regulations, the Minister noted the issuance of a resolution delineating appropriate areas for solar energy projects, thus promoting the development of small and small-scale projects. In addition, the national medium voltage network was opened, accompanied by a resolution establishing the conditions for operators of electricity distribution networks nationwide.

As such, the Minister for Energy Transition and Sustainable Development unveiled several incentive measures intended to encourage the use of solar energy, mainly in the agricultural sector. This includes exemption from value added tax for materials used in the manufacture of solar panels, as well as total exemption from value added tax at import and on the domestic market for solar pumps used in agricultural irrigation and for multipurpose installations in the agricultural field.

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