Despite being a traditional energy import market, Morocco has worked on building competitive renewable energy infrastructure which contributed to boosting the attractiveness of the domestic market among foreign investors.
This year, consulting firm EY ranked Morocco 19th globally in its renewable energy country attractiveness index (RECAI), behind larger economies such as the US, China, Germany, the UK, France, Australia, India, and Spain.
Despite Morocco’s relatively low GDP estimated at $133 billion in 2021, according to the World Bank, the country has exceeded expectations by developing large-scale renewables pipelines, aiming to serve domestic and foreign demand for clean energy.
According to EY, Morocco ranked first in the world in the normalized RECAI ranking which assesses markets’ performance in accordance with their economic size (GDP).
Morocco outperformed Greece, Denmark, Jordan, Chile, Ireland, and Australia in the ranking in addition to the world’s most attractive market for renewable investments, the United States, which placed 31st behind Brazil and China.
Morocco’s high ranking in the EY normalizing index affirms earlier reports stressing the country’s leading role in advancing renewable energy infrastructure in Africa and cutting down production costs to make clean energy accessible to all.
Despite its relatively small GDP, Morocco is determined to attract and facilitate foreign investments in the country, particularly in projects related to green transition and decarbonization with solar, wind, and green hydrogen pipelines being at the center of investment bids.
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While the country remains reliant on coal power plants and energy imports to meet its growing energy demands, Rabat plans to phase out coal by 2040 while increasing the share of renewable energy in its electricity mix to 52% by 2030 and 80% by 2050.
In 2021, Morocco’s renewable energy supply recorded a 10% annual increase to reach 7.9 terawatt-hours (TWh), 19% of the total energy market, up from 7.3TWh in 2020.
With 3,000 hours of sunshine a year, Morocco is well placed for solar power but wind energy is expected to overtake solar in the coming decade, EY reported, as large onshore and offshore wind plants are currently in development.
“Topographical features such as the Atlas Mountains and access to the Sahara Desert have allowed Morocco to build flexibility into its power system, with pumped storage hydropower in the mountains and concentrated solar power plants (some with thermal storage) in areas with the most direct sunlight,” the report indicated.
In addition to becoming a large producer and exporter of renewable energy, Morocco is expected to deliver cost competitive green derivatives of hydrogen such as ammonia to the global market with the support of a network of desalination plants. The country is currently leading multiple pilot projects for green hydrogen and ammonia to assess scaling-up prospects.
SOURCE: Morocco news