Morocco is investing in solar energy to reduce reliance on fossil fuels, with the goal of generating 52% of its electricity from renewables by 2030. A new report Morocco's cumulative solar PV capacity is expected to 2.97 GW by 2028. To reduce reliance on imported fossil fuels, Morocco has been investing in renewable energy, particularly solar power, with its significant solar energy potential, as highlighted in a new report from SolarPower Europe. Published on March 18 in collaboration with the Global Solar Council and Cluster EnR, the report explores promising investment opportunities within Morocco's solar sector, examining the country's market dynamics, regulatory frameworks, and offering practical recommendations to accelerate solar energy deployment. Currently, Morocco's energy needs are largely met by fossil fuels, which make up 90% of the total primary energy supply (TPES) and 80% of electricity generation. However, the country is steadily transitioning to renewable energy, which now accounts for 20% of electricity production, thanks to the National Energy Strategy launched in 2009. In 2022, renewable energy accounted for 38% of installed electricity capacity in Morocco, rising to 41% in 2023 and approximately 45% in 2024. While fossil fuels remain dominant, the strategy prioritized wind and solar energy development, leading to the creation of the Moroccan Solar Plan (2009). The Solar Plan aims to generate 3,000 MW of solar energy by 2025 and 4,000 MW by 2030. Morocco's Solar PV Growth and Challenges In 2023, Morocco's cumulative solar PV capacity reached 0.32 GW, according to SolarPower Europe and ONEE data. In a medium-case scenario, SolarPower expects this capacity to rise to 2.27 GW by 2027 and 2.97 GW by 2028. In a high-growth scenario, the capacity could reach 4.35 GW by 2028. Despite Morocco's renewable energy goals, solar PV expansion has faced challenges due to a greater focus on Concentrated Solar Power (CSP), delays in PV project implementation, and grid integration issues, which have limited the sector's full potential, the report notes. In terms of electricity infrastructure, the report highlights that Morocco's total generation capacity in 2024 is 11,987 MW, with 831 MW (including both PV and CSP) generated from solar. Strengthening Morocco's Renewable Energy Market To attract more private investment, Morocco should continue liberalizing its electricity market and implement necessary reforms to ensure the sustainability of renewable energy initiatives. This includes expanding Power Purchase Agreements (PPAs), establishing clearer legal frameworks, providing tax incentives, and encouraging energy-intensive industries to engage in PPAs. The report also recommends strengthening North-South grid connections. Since solar energy is primarily generated in the south and demand is concentrated in the north, reinforcing these grid connections is crucial for efficient energy delivery. Investments in transmission networks will help optimize the energy mix, improve grid stability, and support Morocco's growing solar capacity. Moreover, enhancing grid resilience and efficiency through modernization efforts will ensure flexibility in energy distribution to accommodate more renewable energy. Despite progress, Morocco should further invest in scaling up battery storage and flexibility options, such as demand-side management and grid digitalization, to stabilize energy output and support greater renewable integration. To further attract energy investments, the report suggests simplifying permitting processes to accelerate solar project deployment. Centralizing permitting under institutions like MASEN would reduce administrative bottlenecks and ensure faster project approval. Other recommendations include implementing VAT exemptions on solar equipment, offering tax reductions for solar infrastructure investments, and introducing tax credits for solar technology R&D to foster innovation. Morocco should also promote green bonds, low-interest loans, and establish renewable energy funds in partnership with international financial institutions to facilitate access to long-term financing for solar projects. To support solar energy exports, Morocco should develop regulations and mechanisms to facilitate the export of solar electricity to neighboring countries. This includes introducing competitive export tariffs, negotiating bilateral agreements, and investing in infrastructure for energy exports, such as interconnections with neighboring countries, to align export capacities with sector development goals.
