KEY POINTS
- Morocco invests $420 million in a 990MW gas power plant.
- The project aligns with its 2030 renewable energy goals.
- Natural gas to play a key role in Morocco’s energy diversification.
Morocco is taking a bold step to expand its energy portfolio with a $420 million investment in a 990-megawatt (MW) gas-fired power plant in the northern part of the country.
The project, spearheaded by the National Office for Electricity and Drinking Water (ONEE), is part of Morocco’s long-term strategy to diversify its energy mix while meeting growing demand.
The funding structure reflects a blend of domestic and international partnerships. ONEE will cover 20 percent of the project costs, while the remaining 80 percent will be financed through loans from Attijariwafa Bank, Bank of Africa, and two securitization funds: FT Nord Energy and FT Flexenergy.
Morocco’s push for energy diversification
The new plant, which will feature two open-cycle gas turbines (OCGT), will primarily run on natural gas but has diesel as a backup fuel.
According to Reuters, it will be constructed on the Alwahda site in northern Morocco, conveniently located near a pipeline used for importing natural gas from Spain.
This initiative is part of Morocco’s broader push to diversify its energy mix, which is currently dominated by coal. The nation has set an ambitious goal of generating 52 percent of its total installed capacity from renewable sources by 2030, up from the current 45 percent.
Alongside renewables, natural gas is being positioned as a critical component of Morocco’s energy transition.
Strategic infrastructure investments
Morocco furthers its energy ambition by planning to develop a natural gas terminal at Nador West Med port in the northeast. This terminal will be connected to the same pipeline supplying the Alwahda site.
According to 2024 figures, Morocco operates a total energy production capacity of 11,918 MW. The new gas-fired power plant serves to improve energy production capacity through enhanced balance and sustainability of the energy mix.
ONEE’s new investment underscores Morocco’s commitment to improving its energy network infrastructure while building dependable energy reserves for future generations.
