Morocco's Energy Sector: Legal Framework, Liberalisation, and Investment Opportunities

Morocco is at the forefront of a transformative journey towards a sustainable and modern energy future. The country's strategic efforts are marked by significant investment in renewable energy infrastructure, aiming to reduce its dependence on imported fossil fuels and enhance energy security. According to the International Energy Agency (IEA), in 2024, renewable energy sources accounted for 42% of Morocco’s electricity production, with solar and wind power contributing 18% and 17%, respectively. The Moroccan government's commitment to energy transition is underscored by robust policies and initiatives. 

The nation's strategic focus on renewable energy projects, such as the Moroccan Solar Plan and the Integrated Wind Program, demonstrates its resolve to lead in green energy. These policies are designed to foster a resilient energy sector, capable of supporting long-term sustainability goals. A comprehensive review outlines Morocco's ongoing and planned energy infrastructure projects. 

The development of new transmission lines, upgrades to existing grids, and the establishment of large-scale renewable energy facilities are pivotal to Morocco's strategy. Morocco's energy transition also embraces the potential of natural gas and green hydrogen, as discussed by the Policy Center. By 2030, Morocco aims to source 52% of its electricity capacity from renewables, positioning itself as a regional leader in sustainable energy.

Energy Market Liberalisation and Independent Power Producers

The liberalisation of Morocco's energy market has been a pivotal development, enhancing competition, efficiency, and technological innovation. Central to this transformation is the legal framework, particularly Law n. 13-09 and its amendment Law n. 40-19, which govern the renewable energy sector. Law n. 13-09, enacted in 2010, promotes electricity production from renewable sources and outlines comprehensive guidelines for independent power producers (IPPs). This law aims to increase the share of renewables in the national energy mix to 52% by 2030. It facilitates IPPs' operations through streamlined licensing, regulatory compliance, and operational guidelines. 

The Moroccan Agency for Sustainable Energy (MASEN) and the Office National de l'Electricité et de l'Eau Potable (ONEE) oversee the implementation of these energy market regulations, ensuring IPPs adhere to established guidelines and support the integration of renewables into the grid. Law n. 40-19 further strengthens this framework by simplifying authorisation procedures, enhancing grid access, and establishing clear tariff structures. 

These laws also provide provisions for the commercialisation of energy produced by IPPs, differentiating sales on various voltage networks, thus enhancing market flexibility. Morocco's energy market benefits from significant IPP contributions, especially in renewable energy sectors like solar and wind power, supported by initiatives such as the Moroccan Solar Plan and the Integrated Wind Programme. These programmes have attracted substantial investments, underscoring the country's commitment to expanding its renewable energy infrastructure and reducing its carbon footprint. The regulatory environment in Morocco is designed to facilitate the entry and operation of IPPs, promoting a competitive market that fosters efficiency and innovation. 

Investment opportunities in Morocco's energy sector are abundant, driven by the favourable legal framework and supportive policies. Morocco's proactive approach in refining renewable energy policy and integrating natural gas and green hydrogen into the energy mix presents new opportunities for technological advancement and sustainability. By prioritising renewable energy and establishing a robust legal framework, Morocco positions itself as a regional leader in sustainable energy, attracting international investments and paving the way for a greener, more efficient energy landscape. The liberalisation of Morocco's energy market and the involvement of IPPs are crucial steps towards achieving a sustainable and independent energy future, enhancing market efficiency, and opening significant investment opportunities, positioning Morocco as a key player in the global renewable energy landscape.

Investment Opportunities and Morocco-EU Energy Trade

Morocco presents significant investment opportunities driven by its strategic location, political stability, and robust infrastructure. The country actively encourages foreign investments, particularly in sectors such as renewable energy, manufacturing, and infrastructure. According to the U.S. Department of State's 2023 Investment Climate Statement, 

Morocco has created a favourable environment for investors by implementing positive macro-economic policies, trade liberalisation, investment incentives, and structural reforms. The Government of Morocco's development plan includes major investments in renewable energy, aiming to achieve 52% of its total installed capacity from renewables by 2030. This goal underscores the country's commitment to expanding its renewable energy infrastructure and attracting green investments in smart grids, green hydrogen, and energy storage.

Morocco's position as a regional business hub is reinforced by its strong trade relations with the European Union (EU). The Morocco-EU energy trade partnership is pivotal for both parties, offering mutual benefits such as enhanced energy security and economic growth. Morocco's strategic location as a gateway to Africa and its extensive network of free-trade agreements, including the African Continental Free Trade Area (CFTA), facilitate its role as a significant energy and trade partner. The expansion of the Tangier-Med port and the development of high-speed train services further enhance Morocco's connectivity with European markets, making it an attractive destination for foreign direct investment (“FDI”).

Foreign investments in Morocco are supported by a comprehensive legal framework that includes 72 investment treaties and 62 economic agreements aimed at protecting and promoting investments. Key investors include France and Spain, with significant investments in manufacturing, real estate, telecommunications, tourism, and the energy sector. Spain, for instance, plans to invest €45 billion in Morocco by 2050, focusing on transport, renewable energies, and water resources management. This strategic partnership aims to modernise Morocco's economy and enhance bilateral relations. Similarly, France is poised to finance Morocco's 3GW power link to Western Sahara, emphasising the deepening economic ties between the two nations. These investments highlight the collaborative efforts to bolster Morocco's energy infrastructure and sustainable development goals. Additionally, Spain and Morocco are showcasing Dakhla's investment potential at joint forums, further cementing their economic partnerships.

The investment opportunities in Morocco's energy sector are further amplified by the country's proactive renewable energy policy and commitment to sustainability. By prioritising renewable energy and fostering a competitive market environment, Morocco attracts international investments and drives technological advancements. The collaboration between Morocco and the EU in the energy sector not only supports Morocco's energy transition but also contributes to regional energy security and economic development.

In Conclusion

At Giambrone International, we specialise in guiding clients through the complexities of the Morocco legal framework to facilitate seamless business investments in Morocco. Our team provides comprehensive support for large corporations, private investors, and public entities, from initial investment to business establishment. We are dedicated to helping you navigate the Moroccan business landscape with expertise and precision. As trusted advisors in the Moroccan market, we are committed to your success. For expert legal assistance, contact us at info@giambronelaw.com or call our Casablanca office.