The presentation of her sectoral budget (as part of the 2025 Finance Bill) on November 5 in Parliament provided Leila Benali with an opportunity to outline Morocco’s strategic energy transition plans and detail the measures taken to implement them. Morocco’s installed electrical capacity has nearly doubled over the past 15 years, increasing from 6,127 MW in 2009 to 11,980 MW as of the end of August 2024, largely thanks to the gradual integration of renewable energy sources.

Specifically, the capacity generated by wind farms has increased tenfold, rising from 221 MW to 2,323 MW. Solar energy, which was absent from the energy mix in 2009, now contributes 861 MW as of late August 2024. Pumped Storage Hydropower Plants (PSHP)—a method of electricity storage that uses the potential energy difference between two water reservoirs separated by an elevation gap—currently provide 814 MW of installed capacity, while hydroelectric facilities account for 1,306 MW.

Developing green energy capacity

While renewable energy is gaining ground, fossil fuels still make up the majority of Morocco’s current energy mix. Fuel oil, coal, and natural gas together generate 6,676 MW of power, representing 55.7% of the energy mix. Coal dominates this segment, producing 4,116 MW, with its share in the mix increasing by more than four percentage points between 2009 and 2024.

By 2027, Morocco aims to achieve 9,614 MW of installed capacity through an investment of 87.9 billion dirhams. This figure excludes additional developments in desalination, green hydrogen, and industrial decarbonization. The planned budget is expected to enable the production of 7,516 MW from renewable energy sources and Pumped Storage Hydropower Plants (PSHPs), while 2,098 MW will be generated from gas-fired combined-cycle power plants.

Natural gas as a transition

Energy consumption in Morocco increased from 15.133 million tons of oil equivalent (toe) in 2009 to 22.723 million toe in 2023, with an average annual growth rate of 3.2%. Petroleum products and coal continue to dominate energy consumption, accounting for 83.2% in 2009 and 83.9% in 2023.

To achieve its decarbonization objectives, the government plans to increase the use of natural gas as a transitional energy source, reducing reliance on fuel oil and coal. The goal is to raise the total capacity of natural gas to over 2 GW in the energy mix. This will involve establishing flexible infrastructure capable of adapting in the long term to the transport of green hydrogen and other low-carbon gases.

Increasing storage capacity

The annual increase in energy consumption and the fluctuation of petroleum product prices on international markets necessitate the expansion of Morocco’s storage capacity.

Currently, the Kingdom has a storage capacity of 2.2 million cubic meters for liquid petroleum products and 0.799 million cubic meters for liquefied products. Diesel accounts for more than half of this storage capacity (53%), followed by butane gas (25%). The remaining capacity is allocated to gasoline, fuel oil, propane, and aviation fuel.

By the end of this year, an additional capacity of 69,000 cubic meters will be added. Meanwhile, an investment of 1.7 billion dirhams is being mobilized for projects that will provide the country with an additional storage volume of 470,000 cubic meters by 2025-2026.

Written in French by Amine Belghazi, edited in English by Eric Nielson