Energy in Morocco
“The creation of the Renewable Energies Development Center (CDER) in 1982 is clear evidence of the government’s determination to promote renewable energy sources.”
SECTOR DESCRIPTION
Morocco, with its growing economy, is the largest energy importer in North Africa, highly dependent on imports of fossil fuels to satisfy its energy needs.
Development of renewable energies is crucial to Morocco’s energy policy for a rapidly growing population. To meet the energy needs of residential, industrial and rural areas, Morocco must graduate to more efficient systems with lower consumption and higher returns in the years to come. In this context, exploiting new energy technologies becomes essential. Morocco’s wind and solar potential are among the highest in the world, making it an ideal market for investments in environmentally sound energy sources.
Since 1996, the Government has made significant gains in improving the private sector’s role in the electric power sector. Through the concessions for thermal power plants, wind farm power plants and power distribution, the private sector now owns and operates 40% of the total installed power generating capacity and 60-70% of the distribution market. The Government’s policy is to create a competitive environment to increase efficiency and reduce costs to consumers through increased private sector participation.
Structure of the market
Hydroelectricity
Morocco has more than 30 years experience in water resources mobilization policy for both agricultural and energy production purposes. Currently, 25% of electricity is of hydro origin. Installed power: 1175 Mega-Watt (MW), with another 550 MW under construction.
Photovoltaic Solar Energy
As of March 2005, a capacity of more than 6 MW is currently installed, providing rural electricity for 14 villages. Photovoltaic energy is also used for water pumping and in the commercial sector.
Commercial uses: telecommunications, TV relays, radio, schools in rural areas.
Solar Thermal EnergyThis is an evolving market. Morocco has gone from a production rate of 52,812 sq. feet/annum in 1999 to 211,250 sq. ft./annum today. The domestic market exceeded 422,500 sq. ft./annum in 2006, with a global turnover of USD 4.5 million for the sector accompanying a considerable decrease in greenhouse gases.
Major potential users: schools, homes and health facilities
Wind Power30 sites have been identified, all of which have considerable development potential. Numerous private foreign operators are developing projects to produce green electricity, and a Wind Atlas is available for consultation.
Capacity: 450 MW at present, 350 MW additional capacity underway.
The Opportunities
SOLAR POTENTIAL
A study financed by the European Commission considered the transferability of the solar thermal parabolic trough technology to Mediterranean countries. Partially based on experience in California, the study prompted the World Bank/Global Environment Facility (GEF) to approve in June 2005 a project to support the implementation of a solar based power scheme in northern Morocco.
The project will be implemented in two phases:
- Engagement of specialized consultants to prepare a feasibility study, bidding documents and draft contracts for power purchasing, fuel supply, and engineering/procurement/construction – EPC; Operation and Maintenance (O&M) agreements; and to advise the national power utility (ONE) during the evaluation of proposals and negotiations to the contract.
- Construction and operation of the plant.
Furthermore, the Government’s rural electrification program (PERG), launched in 1996, aspires to electrify more than 35,000 villages, giving power access to 12 million rural citizens, via photovoltaic kits. At the end of July 2007, 30,255 villages had been electrified, touching 1,709,654 homes, or about 11,112,456 inhabitants.
Between 1991 and 1994, CDER conducted measurements to determine the wind potential along the Atlantic coast and in the north-east of the country. In a second phase, from 1997 – 2000, selected sites were investigated. Now the final phase, 2001 – 2010, is geared to the evaluation of potential in the mountainous Atlas and Rif regions.
Wind farm projects have recently been completed in Tangier and Essaouira. The Tangier farm comprises two sites: Sendouck, 65 MW and Dhar Saadane, 75 MW. The latter project, worth over USD 80 million, is expected to produce 210 Giga-watt-hours (GWh). Both were completed in 2006.
Wind farm projects have recently been completed in Tangier and Essaouira. The Tangier farm comprises two sites: Sendouck, 65 MW and Dhar Saadane, 75 MW. The latter project, worth over USD 80 million, is expected to produce 210 Giga-watt-hours (GWh). Both were completed in 2006.
WIND POTENTIAL
Morocco has good very good wind conditions, with mean wind speeds exceeding 24 mph in some places, so the country’s exploitable wind potential is substantial. CDER estimates Morocco’s total wind power potential at 6,000 MW. The Government increased the share of electricity generated with wind power to 4% in 2004.
Morocco has good very good wind conditions, with mean wind speeds exceeding 24 mph in some places, so the country’s exploitable wind potential is substantial. CDER estimates Morocco’s total wind power potential at 6,000 MW. The Government increased the share of electricity generated with wind power to 4% in 2004.
- Hassan II Subsidy: Projects dealing with the environment are eligible for a subsidy consisting of 50% of the cost of land, calculated on a maximum price of USD 2.58/sq. foot; 30% of the cost of construction, calculated on a maximum cost of USD 15.78/sq. foot.
- Exemption from commercial license tax for all commercial or industrial activities during the first five years of activity; and on land, new construction, continuing construction, and equipment acquired during the operation.
- Exemption from urban tax for new construction, continuing construction, and equipment related to the operation for the first five years.
The creation of the Renewable Energies Development Center (CDER) in 1982 is clear evidence of the government’s determination to promote renewable energy sources. Current policy aims to develop renewable energies in ways that complement other energy forms, to develop local skills, and to implement a strategy of partnership with the private sector.
The goal of the Moroccan government is to raise the renewable energies share of national electricity production to 20% by 2012.
The renewable energy policy is currently in its general implementation phase, supported by the CDER and the Electricity Department (ONE), focusing on economic issues and sustainable development.
- Mid-term goal: ensure that renewable energies represent from 6% to 10% of Morocco’s domestic energy consumption
- Promote the use of renewable energies
- Economic and social objectives: secure renewable supplies, expand rural access to electricity, optimize costs while alleviating negative environmental impacts
- Main activities include: increased exploitation of hydroelectric resources, the production of wind and solar energy, the promotion of modern rural energy services (decentralized electrification of 10,000 villages), the production of hot water using solar panels
- Expected impacts include: a potential savings of 1.5 million tons of oil equivalent (TOE), a reduction of carbon dioxide emissions, a limitation of deforestation, job creation, energy export promotion (green electricity, equipment, technical expertise)
- Increased foreign investment and partnerships in these energy related fields
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