Summary:

On 6 May 2025, Moroccan Minister of Energy Transition and Sustainable Development, Leila Benali, affirmed Morocco’s plans to become a regional hub for renewable energy during the 4th edition of the Europe-Africa Forum. 

Highlighting her country’s potential, she noted that the cost of producing renewable energy in Morocco is less than one-third the cost of nuclear power in some European countries.  

This comes as the Australian mining giant Fortescue announced plans to invest in Morocco’s renewable energy sector to export electricity via undersea cables to the UK. 

A week prior, the Minister confirmed that the United Arab Emirates would contribute to the Nigeria-Morocco Gas Pipeline project funding alongside other financing partners, including the European Investment Bank (EIB), the Islamic Development Bank (IsDB), and the OPEC Fund. 

Benali also announced opening tender for a liquified natural gas terminal near the Nador Port to meet energy export needs.  

Meanwhile, the International Atomic Energy Agency and the Moroccan National Nuclear Center agreed to cooperate to use nuclear techniques for better water resource management, environmental protection, and industrial applications. 

Outlook: 

The recent developments highlight Morocco’s plans to diversify energy sources to reduce coal usage and develop renewable energy and gas infrastructures as the country’s needs are set to increase in the coming years, especially with plans to host international events and develop the tourism sector.  

The country’s efforts to engage international partners in electricity and gas interconnection are proving fruitful as interest in renewable energy projects has grown amongst Eastern and Western investors alike. This interest is likely to encourage government support to facilitate the establishment of these projects both domestically and amongst international government partners. 

However, Morocco still has to face competition from Algeria as the latter is offering competitive projects with the advantage of interconnectivity with Tunisia and Libya which are closer to the heart of Europe. 

Ongoing challenges related to Western Sahara are also a factor for investments when assessing energy interconnectivity with Mauritania and other sub-Saharan countries.  

Explore our services or speak with our team of North Africa-based risk experts.