Global Gateway: The Realities of Morocco’s Renewable Energy Development

Aerial view of solar power plant in Ouarzazate, Morocco, February 4, 2016. (Photo: AP Photo/Abdeljalil Bounhar)

Unlike other countries in the MENA region, Morocco is not a gas-producing nor oil-producing country. The North African nation heavily relies on fossil fuel imports to provide energy to its population, with 90 percent of the country’s energy needs for both commercial and residential use met through imported natural gas and other fossil fuels, according to the World Bank.

However, Morocco finds itself obligated to leverage its optimal geographic location to position itself as a key resource for Europe’s renewable energy ventures. Greenpeace’s report highlights how European investments in Morocco not only keep “colonial-era extractivist practices” alive, but also how Europe’s investments – “framed as mutually beneficial” – greenwash the continent’s aim to diversify its energy resources at the disadvantage of developing countries. 
Global Gateway is notably one of Europe’s largest initiatives aimed at securing energy sources from external markets. Created by The European Commission and the EU High Representative in 2021, the initiative has prompted the increase of diplomatic relations with Morocco.

At the annual European Development Days forum in 2022, the Moroccan Head of Government, Aziz Akhannouch, quoted that his country is “the first country in the world to commit to the conclusion of a Green Partnership with the EU.” 

A history of French colonization continues to drive economic power dynamics in Morocco. The country’s renewable energy potential has attracted investment from France, with about one-third of the country’s flows, or economic exchange, occurring with France in the 2022-23 fiscal year. 

TotalEnergies – a multinational European energy company – has committed $10.6 billion to develop a green hydrogen and ammonia plant in Guelmim-Oued Noun, Morocco, with production expected to begin in 2027. Additionally, Germany has pledged up to €300 million to support green hydrogen facilities. Both initiatives target export markets to allow Germany and other European countries to source renewable energy from Morocco in the future. 

When asked whether it makes sense to export green electricity before fully meeting Morocco's domestic needs with renewable energy, Leila Benali, Morocco’s Minister of Energy Transition, emphasizes that the “priority” should be ensuring Moroccans have access to the “lowest-cost” green energy. She also highlights the importance of seizing the “historic opportunity” to amalgamate with Europe's energy market, noting that this could attract much-needed private investment. 

The Afriquia Company, a major distributor of petroleum products owned by the Moroccan billionaire and current Prime Minister Aziz Akhannouch has amassed millions of dollars in illegal profits. Together, Afriquia Company and other petroleum companies amassed about 1.7 billion USD beyond legal profit between 2015 and 2018. Corruption within the energy sector is a key contributor to the widespread dissatisfaction among Moroccans.

Transparency International reported that in 2019, 74 percent of Moroccan youth surveyed believed that corruption affects their abilities to earn job and educational opportunities. In light of the Moroccan government’s aims of developing sustainable energy equitably, citizens’ complaints appear increasingly telling. 

In general, large-scale renewable energy projects are built off the assumption that their revenue, in time, will compensate for their initial start-up costs. While this may prove true for private partnerships in renewable energy, it does not apply to public programs that provide general welfare rather than focusing on profits. Morocco’s economic situation is riddled with challenges, making looking critically at the country’s renewable energy enterprises quite central.