The European Investment Bank (EIB) in collaboration with German bank KfW have granted a whopping sum of $340 million (€300 million) to support Morocco’s renewable energy integration into its national grid.
The financing package comprises €170 million from the EIB and €130 million from KfW, and was given to North Africa’s state-owned utility company, ONEE.
The fund will also be used to expand the national electricity transmission network by 730km, increasing the grid’s transmission capacity, the EIB said in a statement.
EIB added that the investments are designed to help improve security of supply, reduce greenhouse gas emissions by 390,000 tonnes of CO2 equivalent per year by 2030, and boost growth across several regions.
ONEE plans to invest MAD177 billion ($19.3 billion) to develop the country’s electricity network by 2030 as Morocco co-hosts the World Cup with Spain and Portugal.
The state utility provider aims to increase installed renewable energy capacity to 56 percent of the country’s total electricity by 2027.
Last week, Taqa Morocco Group and the sovereign Mohammed VI Investment Fund signed agreements with the Moroccan government and ONEE to invest AED52 billion ($14 billion) to back energy transition and water security.
In December 2023, UAE President Sheikh Mohamed bin Zayed Al Nahyan and Morocco’s King Mohammed VI agreed to boost economic cooperation.
In June last year, construction began on a $653 million seawater desalination plant to combat water shortages in Casablanca, the largest city in Morocco.
The plant at Sidi Rahal is a public-private partnership with Acciona of Spain and a consortium of Afriquia Gaz and Green of Africa, both part of the local Akwa Group.
North Africa—where Morocco is—is the largest renewable energy market in Africa, followed by South Africa.
In April, the United Kingdom announced plans to partner with the North African country to bolster energy security and sustainability with renewable energy projects.
