Transition Time: Morocco’s efforts to develop a modern and sustainable grid

With limited domestic fossil fuel reserves, Morocco has historically relied on imports to meet its energy needs. This dependence makes the country vulnerable to fluctuations in global energy prices and potential supply chain disruptions. There is an urgent need to transition to a sustainable and resilient energy economy.

Over the past decade, Morocco has pursued an ambitious, strategic vision aimed at reducing its reliance on energy imports while enhancing energy security and sustainability. However, the challenges of rapid urbanisation, industrial expansion and increasing electricity demand complicate efforts to meet immediate energy needs while simultaneously shifting toward low-carbon energy sources.

To address these challenges, Morocco is making significant investments in the development of renewable energy sources (RES) and modernising its power infrastructure. The country has set a target for 2030, to increase the share of RES and hydropower in the generation mix to 52 per cent compared to its 44.3 per cent share as of December 2024. The aim is to achieve 10 GW of installed clean energy capacity by 2030, almost doubling it from the current 5.44 GW. To support this addition, Office National de l’Electricité et de l’Eau Potable (ONEE), or the National Office for Electricity and Potable Water, has allocated MAD 30 billion to upgrade its electricity grid. Additionally, it plans to connect the south and central parts of the country through a 3 GW high voltage overhead line between Dakhla and Casablanca to strengthen the national energy infrastructure and promote optimised RES integration. Key strategies include improving operational efficiency, increasing private sector participation and implementing critical market reforms to strengthen the energy sector’s resilience. To this end the country’s Minister of Energy Transition and Sustainable Development recently clarified that the private sector will have an opportunity to invest in the country’s electricity network for the first time when necessary.

Additionally, Morocco plans to enhance cross-border energy interconnections. Its strategic location at the nexus of Europe, Africa and the Middle East positions it uniquely to enhance regional energy cooperation. One of the key global initiatives is the British company Xlinks’ GBP 24 billion Morocco-UK power project, which intends to generate a massive 11.5 GW (almost equal to Morocco’s current installed capacity) from large-scale solar and wind facilities, coupled with a 22.5 GWh/5 GW battery energy storage system in the province of Tan-Tan, Morocco. It will deliver 3.6 GW of firm and flexible energy for an average of over 19 hours a day to power over 7 million homes in the UK via two 1.8 GW, 4,000 km high voltage direct current (HVDC) undersea cables starting in the early 2030s. Notably, the project is designated as a Nationally Significant Infrastructure Project (NSIP) in the UK and has attracted GBP 100 million in development funding from global investors such as UAE-based Abu Dhabi National Energy Company (TAQA), French multinational Total Energies, British renewable energy supplier Octopus, GE Vernova and Africa Finance Corporation (AFC).

By leveraging its geographical position and growing RES capacity, Morocco aims to become a significant exporter of green electricity, supplying clean energy to both European and African markets, thereby reinforcing its role as a key player in the regional energy landscape.

Existing power infrastructure

ONEE, Morocco’s national power and water utility, plays a pivotal role in the country’s energy sector, holding a monopoly over electricity transmission and being a significant player in electricity production and distribution.

As of December 2024, Morocco’s installed generation capacity stood at approximately 12.28 GW, with fossil fuel-based power plants accounting for about 56 per cent. RES, comprising solar and wind power, contributed 27 per cent, while hydroelectric power made up the remaining 17 per cent. Among the highlights of Morocco’s RES transition is the Noor Ouarzazate solar complex, a 510 MW concentrated solar power facility (with plans to ramp up capacity to 582 MW), which is the largest of its kind in the world. In 2024, the commissioning of the 270 MW Jbel Lahdid wind farm in the Essaouira province increased the country’s wind capacity to 2.4 GW. Notably, Morocco ranks first in RES deployment in the African continent, followed by Egypt and South Africa, and continues to demonstrate consistent growth in
RES deployment.

Morocco’s electricity grid spans an extensive 15,570 km, with approximately 72 per cent (11,259 km) at 225 kV, 27 per cent (4,164 km) at 400 kV, and just under 1 per cent (147 km) at 150 kV. The transmission network also includes 13,326 km of 60 kV lines, bringing the total transmission length to 29,105 km. The transformer capacity reached about 30,527 MVA at the end of 2023, supported by a network of 558 substations that ensure the stability and reliability of power transmission.

Some notable infrastructure advancements in recent years include the 225 kV Midelt substation, designed to support the region’s solar power plant and enhance grid integration; the 400/225 kV Boujdour transformer station, which is a critical addition to the southern power grid to facilitate the integration of renewable energy; and the 400 kV Chemaia–Sidi Bennour transmission line, aimed at bolstering energy transmission capacity and regional stability.

Morocco has also strengthened its position in regional energy exchanges. In 2023, it facilitated the exchange of 1,849 GWh of electricity with Spain, highlighting its growing integration with Iberian and European energy markets. Additionally, Morocco maintains interconnections with Algeria through two 400 kV and two 220 kV transmission lines.

Energy supply enhancement plans

To address growing electricity demand and the challenges of integrating renewables into the grid, Morocco’s government is actively diversifying the energy mix. A key pillar of this transition is the country’s ambitious plan to achieve 10 GW of installed clean energy capacity by 2030, comprising 4.5 GW of solar, 4.1 GW of wind and 1.3 GW of hydroelectric power.

To achieve this, the Moroccan government has set a target of adding 9 GW of generation capacity to power nearly 8 million households. Of this, 7 GW will come from RES, while the remainder will rely on natural gas or liquefied natural gas to ensure grid stability.

The prospective for RES addition beyond 2030 also remains bright. For instance, as mentioned earlier, Xlinks plans to add 11.5 GW of RES capacity by early 2030.

Additionally, Morocco is developing its green hydrogen economy through a structured, phased approach outlined by the Ministry of Energy Transition and Sustainable Development. The roadmap includes:

2020-2030: Laying the foundation by using domestic green hydrogen as a raw material and initiating exports, supported by pilot projects and international financing

2030-2040: Expanding hydrogen production, integrating it into the electricity sector and reducing production costs

2040-2050: Scaling up hydrogen applications for residential heating, urban mobility, heavy transport and aviation, establishing Morocco as a global hydrogen leader

The potential of green hydrogen has attracted significant international investments. Notable projects include collaborations with TE H2 (a joint venture between TotalEnergies and the EREN Group), Copenhagen Infrastructure Partners and A.P. Møller Capital, positioning Morocco as a key player in the global energy transition. To attract investments, the government has earmarked 1 million hectares of land for projects. Of this, 300,000 hectares will be made available to both foreign and local investors in the first phase.

Transmission network enhancements

To support its energy transition goals, Morocco plans to expand its transmission network by 3,732 km by the early 2030s, covering domestic projects and major international interconnections.

Domestic projects

Morocco is implementing substantial upgrades to its electricity transmission network to improve service quality, ensure reliable power delivery to key demand centres, integrate new power generation facilities and replace ageing infrastructure. The recently announced MAD 30 billion grid investment is committed to modernising its energy infrastructure and enhancing energy security through several efforts. These include the installation of additional autotransformers, capacity enhancements at critical substations, as well as the replacement and rehabilitation of outdated transmission lines and transformers, particularly in high-demand areas. ONEE plans to strengthen high voltage networks by creating 225/60 kV injections, besides undertaking some of the key strengthening projects in regions such as Casablanca, Tensift and Agadir.

In addition to the upgrades, ONEE plans to develop a 1,400 km North-South HVDC interconnection project with a capacity of 3 GW to bring electricity from Dakhla in the south to the more heavily populated north of the country. The connection points will be Ouled Lekraa, about 60 km north of Dakhla; and Mediouna, about 15 km south of Casablanca, along with several converter stations to be installed en route in Laayoune, Tan-Tan, Agadir and Marrakech. In November 2024, ONEE shortlisted five international companies for the engineering, procurement and construction (EPC) contract of this project. These were the US-based GE Vernova, German Siemens Energy, Chinese PowerChina SEPCOI and TBEA, and Indian Larson & Toubro. The EPC contract also includes a long-term service agreement for maintenance. Earlier in the year, ONEE had considered offering the project under two implementation structures – a 30-year build-own-operate-transfer model and a turnkey EPC scheme. The project is expected to be implemented in two phases by 2029.

International partnerships and cross-border projects

Morocco is strengthening its energy partnerships across Africa, expanding cooperation with nations such as Chad, Niger, Senegal and Mali. These collaborations, led by ONEE, focus on advancing rural electrification and RES projects. In Chad, ONEE signed a contract to design, construct and operate a 3 MW PV solar power plant, contributing to the nation’s rural electrification efforts. Similarly, in Niger, ONEE is spearheading the construction of three solar power plants and electrifying 27 villages. Additionally, in early 2025, Morocco and Mauritania signed an MoU to enhance collaboration in electricity infrastructure and renewable energy development.

To bolster its energy infrastructure and position itself as a regional energy hub, Morocco is advancing several significant cross-border transmission projects:

Morocco–UK HVDC link: This groundbreaking project, which will be fully funded by the private sector, involves constructing an HVDC interconnection between Morocco and the UK power grid developed by Xlinks First Limited, a subsidiary of Xlinks. The project includes twin 4,000 km subsea HVDC cables. In 2023, the UK designated the project as NSIP, which means that it will require a development consent order from the UK Department for Energy Security and Net Zero, replacing the need for local authority planning permission. The project involves a 3.6 GW connection agreement with the UK’s transmission company National Grid in North Devon. The project involves an investment of GBP 24 billion, with about GBP 5 billion to be invested in the UK. It has attracted significant funding from global investors – TAQA (GBP 25 million), Total Energies (GBP 20 million), Octopus (GBP 5 million), AFC ($14.1 million) and GE Vernova ($10.2 million). The interconnection is expected to become operational in the early 2030s and will supply up to 8 per cent of the UK’s electricity needs, leveraging Morocco’s RES capacity.

Third Morocco–Spain interconnector: ONEE and the Spanish transmission system operator Red Eléctrica are jointly developing this project. This initiative entails the construction of a 100 km, 400 kV high voltage alternating current link, including a 30 km subsea cable connecting Puerto de la Cruz in Spain to the Beni Harchane substation in Morocco. Jointly developed by Morocco and Spain, the project will provide an additional 600 MW of transmission capacity, enhancing energy exchange between Europe and North Africa. The interconnector is slated for commissioning by 2030.

Morocco–Portugal HVDC link: The proposed Morocco–Portugal HVDC link between Ben Harchane, Morocco and Tavira, Portugal, is based on a configuration of two circuits (bipolar converter) of 500 MW each and a total length of 265 km. The link, promoted by the governments of the two countries, will improve grid stability, support energy transition and strengthen regional energy security. It will be developed by ONEE and its Portuguese counterpart Redes Energéticas Nacionais.

Policy reforms

The restructuring of ONEE is in progress, with plans to separate its generation, transmission and distribution operations and assets to optimise performance and accountability. Morocco is also considering private sector participation in transmission, a move aimed at bringing in competition and enhancing efficiency. By simplifying authorisation procedures, allowing independent power producers to sell surplus electricity and removing zooming restrictions for solar projects, the government aims to attract both domestic and international investors. With this revised commercialisation framework, the government is expecting more private sector involvement, particularly in solar and wind energy projects. Key governance reforms are also under way, including the expanded mandate of the National Electricity Regulatory Authority to oversee electricity regulation more comprehensively in addition to other energy fields, including natural gas and new energy sources such as hydrogen.

Conclusion

Morocco’s transformative approach towards its energy sector, through strategic investments and policy reforms, exemplifies its commitment to sustainable development, energy security and economic growth. With ambitious plans to expand its renewable energy capacity, modernise its electricity infrastructure and develop its green hydrogen economy, Morocco is not only addressing its domestic energy needs but also emerging as a key player in regional and international energy markets. These efforts, underpinned by a defined strategy, highlight Morocco’s role as a model for energy transition in Africa and beyond.