The National Office for Electricity and Drinking Water (ONEE) has secured €300 million in funding from the European Investment Bank (EIB), the German development bank KfW, and the European Union (EU) to modernize and expand Morocco's national electricity grid. The announcement was made during a high-level visit to the 270 MW Jbel Lahdid wind farm in Essaouira province, a key project under Morocco's 1,000 MW Integrated Wind Energy Program, announced ONEE on Thursday. The financing, structured by the EIB (€170 million) and KfW (€130 million), aims to reinforce Morocco's electricity transmission network across 731 km, increasing its capacity by 1,850 MVA. The goal is to enhance the integration of renewable energy into the grid and support Morocco's energy and climate objectives, including the reduction of 390,000 tonnes of CO2 emissions annually by 2030. The Jbel Lahdid wind farm, operational since October 2024, produces 952 GWh/year—enough to power 1.2 million people. It was co-financed by €200 million loans from both the EIB and KfW, along with a €15 million EU grant. This initiative is part of ONEE's ambitious €220 billion investment plan through 2030, with €177 billion allocated to the electricity sector. Projects include 12.5 GW of new renewable capacity, a 1,400 km «electric highway» between southern and central Morocco, and a stronger national grid to boost energy security and economic development. Officials from the EIB, EU, Germany, and KfW praised the project as a model of international cooperation under the EU-Morocco Green Partnership and the European Green Deal. They highlighted its role in supporting Morocco's transition to a low-carbon economy and positioning the country as a regional leader in clean energy. This partnership is further reinforced by the Mutual Reliance Initiative (MRI), under which the EIB leads project coordination to simplify procedures and accelerate implementation. The EU's guarantee mechanism also improves financing terms and impact. ONEE Director General Tarik Hamane welcomed the support, emphasizing Morocco's commitment to achieving 56% renewable electricity capacity by 2027. With over 12 GW installed and a 30,000 km grid, ONEE is a central actor in the country's energy transition. This financing follows the landmark 2022 EU-Morocco Green Partnership and the 2023 Green Energy program launched at COP28, both of which aim to advance reforms, market liberalization, and decarbonization in Morocco's energy sector.
