Morocco’s Renewable Energy Potential as a Climate Mitigation Tool

November 2, 2023

A recent report published by the International Monetary Fund (IMF) on October 27, 2023, has underscored Morocco’s substantial renewable energy potential as a critical tool for climate mitigation. With the energy sector being the largest contributor to Morocco’s greenhouse gas emissions, accounting for 65.1% of total emissions in 2018, this shift towards renewables holds great promise.

Abundant Renewable Resources

Morocco possesses abundant renewable energy resources, particularly in solar and wind energy. The country enjoys approximately 3,000 hours of sunshine annually, making it one of the world’s highest rates of solar insolation. Additionally, wind speeds average 5.3 meters per second across more than 90% of Morocco’s territory. Leveraging these resources can significantly reduce Morocco’s reliance on fossil fuels.

Economic and Environmental Benefits

Fully harnessing its renewable energy potential can not only reduce Morocco’s dependence on imported fuels but also enhance its competitive advantage in green energy markets. This transition can also lead to substantial job creation. The Morocco Country Climate and Development Report for 2022 estimates that shifting to over 85% renewable electricity by 2050, up from 20% in 2021, could generate at least 28,000 jobs annually within the renewable energy and efficiency sectors, totaling 140,000 jobs within five years.

Private Sector Investments and Reform

To capitalize on these opportunities, Morocco will require significant investments in renewable energy, primarily from the private sector. Attracting such investments depends on further reforms in the country’s electricity market to ensure equitable access to transmission and distribution networks at regulated tariffs.

A Key Role in Climate Strategy

Morocco’s energy sector plays a central role in the country’s climate change strategy, contributing significantly to its mitigation efforts. The International Energy Agency has set an ambitious goal of expanding renewable electricity generation from 17.6% in 2020 to 52% by 2030.

IMF Support for Climate Resilience

In September 2023, the IMF’s Executive Board approved an 18-month arrangement for Morocco under the Resilience and Sustainability Facility (RSF), amounting to $1.32 billion. This initiative aims to assist Morocco in addressing climate vulnerabilities, enhancing climate resilience, and advancing decarbonization efforts.

Significant Investment Required

The IMF report highlights the need for a substantial increase in the installed capacity of Morocco’s power sector, requiring an estimated investment of $46 billion in present value terms to steer the country toward a low-carbon trajectory by the 2050s. This investment is crucial to achieving Morocco’s climate goals and fostering a sustainable, resilient future.

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