- Morocco is investing €420 million to build a 990MW gas power plant to ensure energy security and meet growing electricity demand.
- The project will be funded through a 20% contribution from ONEE and 80% from structured loans, with support from Attijariwafa Bank, AfDB, and two securitisation funds.
- The plant will primarily use natural gas imported from Spain, with diesel as a backup, while Morocco continues to expand its renewable energy capacity.
Morocco will build a 990-megawatt (MW) gas power plant, investing €420 million to strengthen energy security and meet rising electricity demand. The Moroccan Capital Market Authority (AMMC) revealed the financial details, marking a significant step toward the country’s goal of energy independence.
The National Office of Electricity and Drinking Water (ONEE) will contribute 20% of the funding, while structured loans and financial instruments will cover 80%. Attijariwafa Bank and the African Development Bank (AfDB) lead the list of lenders. FT Nord Energy and FT Flexenergy, two securitisation funds, will diversify funding sources and reduce costs.
The plant will run primarily on natural gas imported from Spain via pipeline. Diesel will serve as a backup fuel in case of supply disruptions, ensuring resilience in the face of geopolitical risks in the region.
Morocco began diversifying its energy sources after the gas agreement with Algeria ended in 2021. The country continues expanding its renewable energy capacity but still falls short of meeting electricity demand. This gas plant will help stabilise the grid while Morocco develops more renewable projects.
Morocco aims to achieve energy independence by tapping into gas and renewable sources and reducing its reliance on external energy supplies. The plant will use existing infrastructure to minimise costs and speed up development.
In addition to enhancing energy security, the project will create jobs during construction and help stabilise energy prices once operational. Lower energy costs could attract more industrial investment, supporting Morocco’s economic growth.
Morocco’s energy strategy focuses on balancing traditional and renewable sources. While the country is pushing forward with solar, wind, and hydro projects, these efforts remain ongoing. Gas will remain necessary until renewable energy can fully meet Morocco’s electricity needs.
This investment in gas infrastructure reflects Morocco’s pragmatic approach to energy security. While the long-term goal is to transition fully to renewable energy, the country recognises the immediate need for reliable power. The plant offers a practical solution to meet current demands while renewable projects continue to grow.
Although Morocco has set ambitious renewable energy targets, gas will remain a critical part of the energy mix in the near term. This project highlights the government’s balanced approach, ensuring energy stability while working toward long-term sustainability.
With the 990MW gas plant, Morocco is positioning itself as a key player in the regional energy market. The increased capacity will boost the country’s standing in North Africa’s energy sector.
Morocco is making a cost-effective investment in its energy future by securing funding from various sources and leveraging existing infrastructure. The gas plant will meet the country’s immediate electricity needs while supporting the broader goal of transitioning to renewable energy.