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Overview of the Moroccan Electricity Industry
Frost & Sullivan, December 2011, Pages: 84
This research titled Overview of the Moroccan Electricity Industry provides electricity installed capacity and electricity demand forecasts, an analysis of key industry participants and a comprehensive analysis of the development of major projects in the industry.
Moroccan Electricity Industry to Focus on Leveraging Renewable Energy Sources
The robust growth in electricity demand has underlined the need for a significant expansion in future generation and transmission capacity in Morocco. This is creating considerable investment opportunities for private sector participation. Surging demand and a strong need to reduce dependency from expensive coal and oil imports have, concurrently, motivated the recent development of the renewable energy sector. The Moroccan electricity market has been growing steadily at nearly 6-8 per cent annually in the last ten years, following robust economic development and the implementation of a very successful rural electrification programme. This trend is expected to continue at about 5-7 per cent for the next ten years, following GDP growth forecasts of 5.5 per cent. Morocco has embarked on a very ambitious electricity generation capacity-build programme in order to raise installed capacity from 6,350 MW in 2010 to 14,500 MW by 2020 as electricity consumption is expected to almost double in the corresponding period. Investments will reach an estimated MAD 138 billion in new generation infrastructure (2012-2020) and MAD 21.3 billion in network expansion (2011-2015). Renewable energy should account for 18% of power generation by 2012 and 42% by 2020.
“In an attempt to develop all energy resources available in the country and to reduce its dependence on imported coal, the Moroccan government has decided to launch an ambitious wind and solar power programme,” notes the analyst of this research. “This renewable energy programme aims to build 4,000 MW of additional capacity by 2020.” The Moroccan electricity market is developing rapidly, with substantial investments planned in the next ten years in order to follow steady demand growth and eventually meet the export potential of green power to Europe, in line with Article 9 of the E.U. Directive 2009/28/EC on the promotion of renewable energy, relating to the “20/20/20” E.U. strategy.
Sectoral Restructuring to Help Sate Morocco’s Growing Appetite for Power
While the Moroccan government’s plans are ambitious, it has struggled to meet targets in the past. For instance, the reserve margin decreased to worrying levels in 2007 and 2008 due to significant delays in completing new generation facilities. Nevertheless, the commissioning of new facilities in 2009 and 2010, combined with an expansion of the transit capacity between Morocco and Spain (inducing an increase of electricity imports from Spain), has helped resolve the issue.
The National Plan of Priority Actions launched in 2008, encompassing the building of new generation capacity and the implementation of energy efficiency measures, has strived to support a better balance between electricity demand and supply from 2009 onwards. Also ambitious new investment projects, particularly new generation facilities using clean coal and renewable energies, are poised to help Morocco meet its rising electricity demand over the next decade. “Regional integration with neighbouring countries (Spain and the Maghreb) will also further secure power supply within the country, fulfilling Morocco’s aspiration to become the power crossroads between Africa and Europe,” concludes the analyst. “Furthermore, the upcoming law on the restructuring of the sector (separating generation, transmission and distribution activities and establishing an independent regulatory body) and the progressive sector’s liberalisation should enhance transparency and promote further private sector participation.”
Key Questions This Study Will Answer
- How is the Moroccan electricity industry structured?
- What are the main drivers and restraints underlying the growth of this industry?
- Where does Morocco stand in terms of promoting energy efficiency and renewable energies?
- How is the Moroccan electricity demand evolving compared to supply?
- What infrastructure has been currently deployed and what are the planned investments?
- Where are the key investment opportunities in the short- to medium-term?
1. Executive Summary
2. Moroccan Electricity Industry Overview
2.2 Key Questions This Study Will Answer
2.4 Key Industry Participants
2.5 SWOT Analysis
2.6 Regulatory Analysis
2.7 Drivers and Restraints
2.8 Demand versus Supply Analysis
2.9 Infrastructure Analysis
2.10 Pipeline of Investments
3. Forecasts and Trends
3.1 Market Engineering Measurements
3.2 Demand versus Supply
3.3 Key Investment Opportunities
4. The Last Word
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