Morocco is leveraging solar energy to drive sustainable economic growth, focusing on renewable energy, reducing fossil fuel dependency, and boosting the economy, Ernst & Young Global (EY) said in a detailed “case study” published on Monday.
Tourism, Morocco’s primary economic sector, supports the nation’s growth, but it only accounts for one-fifth of the economy.
With 45% of the population employed in agriculture, which contributes just 12% to GDP, the government recognizes the need to diversify.
Energy costs, particularly in manufacturing, range from 3% to 30%, making affordable energy critical for industrial growth.
Dependent on fossil fuel imports, Morocco’s economy has been vulnerable to energy price fluctuations, limiting growth.
Driven by the vision of ecologically minded King Mohammed VI, Morocco is now focusing on renewable energy for sustainable development.
Obaid Amrane of the Moroccan Agency for Sustainable Energy (Masen) has highlighted the country’s rich natural resources, particularly solar and wind as a means to protect Morocco from energy market volatility and enhance citizens’ well-being through access to clean energy and wealth creation. Indeed, that is Masen’s mission.
To retain talent and labor within the country, Morocco is investing in infrastructure, including reliable, affordable electricity. This is crucial for maintaining a skilled workforce and supporting the economy.
King Mohammed VI is prioritizing environmental sustainability along with economic growth. Hosting the COP22 climate summit in 2016 emphasized the country’s commitment to low-carbon development.
Masen was tasked with increasing renewable energy capacity to support Morocco’s growth while minimizing environmental impact.
Because, access to reliable energy is essential for modern infrastructure, including internet connectivity, especially in remote areas, solar energy is being deployed to power telephone poles that are off the electricity grid, helping to bridge the digital divide.
Masen, with the help of EY, is solving the challenge of providing reliable renewable energy at scale.
Concentrated solar power (CSP) technology, chosen for its ability to store energy after sunset, is key to this effort.
The Noor Ouarzazate project, located near Ouarzazate, uses CSP to generate electricity and support Morocco’s economic growth. It is expected to reduce energy costs, lower fossil fuel dependency, and foster local business development.
The Moroccan government also intends to build local skills and capacity through renewable energy projects, and the Noor Ouarzazate project sources 35% of its equipment and labor from within Morocco, surpassing its initial target.
Financing large-scale infrastructure projects in developing countries can be challenging. The Noor Ouarzazate project overcame financial hurdles through innovative approaches that reduced risks for investors and secured lower interest rates.
Masen played a critical role in mobilizing financing, purchasing electricity, and ensuring the project’s financial viability. The model could serve as a blueprint for future infrastructure projects in emerging markets.
Noor Ouarzazate demonstrates Morocco’s commitment to sustainable energy, economic growth, and environmental protection. As the final phase of the project nears completion, its success could lead to more investment in CSP technology worldwide.
Through collaboration between public and private sectors, Morocco is setting a new standard for renewable energy development, driving inclusive growth, and building a better future.