meed-logo

line1 line2 line3
SIGN IN / REGISTER

Morocco leads Maghreb energy transition

11 July 2023

More on Morocco’s power and water sector:

> Morocco seeks firms for 400MW pumped storage contract
> Morocco extends Casablanca water PPP deadline
> US firm plans 2MW Morocco hydrogen project
> China's Tinci plans $280m Morocco lithium-ion plant
> Xlinks to seek construction partners
> Morocco signs $6.4bn electric battery and storage deal
> Morocco tenders 900MW power plant contract

 

Morocco is among the list of Maghreb countries that have seen few deals awarded in the power generation sector over the past 12 to 24 months.

The last contract awards it recorded were in April 2022 for the 333MW first phase of the Noor 2 solar photovoltaic (PV) project.

The Moroccan Agency for Sustainable Energy (Masen) and Morocco’s Energy Transition & Sustainable Development Ministry awarded six packages of this tranche to three independent power producer (IPP) developers: Voltalia Maroc, Enel Green Power Morocco and the UAE-based Amea Power.

Xlinks scheme

The country, however, could emerge from the doldrums with key projects such as the $18bn Xlinks on the horizon, enabling it to hold on to its status as the regional leader in renewable energy.

The Morocco-UK power project entails building 10,500MW solar and wind farms in Morocco’s Guelmim-Oued Noun region and sending 3,600MW a day of energy exclusively to the UK via four 3,800-kilometre high-voltage, direct current (HVDC) cables.

MEED understands the first phase of the surveys for the project is complete, with geophysical and geotechnical surveys expected to finish this year and next year.

The HVDC pipeline will pass through Spain, Portugal and France, where permitting processes are being undertaken. Financing sources could include export credit agencies, multilateral development agencies and commercial or investment banks.

Morocco aims to source up to 52 per cent of its energy – up from the current 32 per cent – from renewable sources and reduce greenhouse gas emissions by 45.5 per cent by 2030 

Earlier this year, Xlinks completed an early development funding round that included a $30.7m investment from Abu Dhabi National Energy Company (Taqa) and $6.23m from London-headquartered Octopus Energy Group.  

The UK-based startup is expected to seek interest from original equipment manufacturers and construction partners soon. This will be followed by seeking interest from financial advisers for the project.

Low-carbon molecules

Morocco aims to source up to 52 per cent of its energy – up from the current 32 per cent – from renewable sources and reduce greenhouse gas emissions by 45.5 per cent by 2030.

Thanks to the country’s strategic location and favourable legislative framework, this ambition is drawing investors focused on green hydrogen and derivatives production.

In April, a team led by China Energy International Construction Group signed a memorandum of cooperation to develop a green hydrogen project in a coastal area in southern Morocco.

The planned project involves constructing an integrated green hydrogen-based ammonia production facility. It will require a solar PV power generation plant with a capacity of 2GW and a wind power plant with a capacity of 4GW.

These plants will supply power to an electrolysis plant that can produce 320,000 tonnes of green hydrogen annually, which will then be processed to produce 1.4 million tonnes of green ammonia annually.

Energy China International Construction Group has partnered with Saudi Arabia’s Ajlan & Brothers Company and the local firm Gaia Energy Company for the project.

Amun project

It is the second high-profile green hydrogen project announced for the North African country since April 2022, when Serbia-headquartered renewables developer and investor CWP Global appointed US firm Bechtel to support developing large-scale green hydrogen and ammonia facilities in the country.

The Amun green hydrogen project, which CWP Global plans to develop in Morocco, is understood to require 15GW of renewable energy and has an estimated budget of between $18bn and $20bn.

Along with these projects – which could take several years to implement – several green hydrogen pilot projects are also under way in Morocco.

Africa-focused transitional energy group Chariot, the Mohammed VI Polytechnic University and UK-based hydrogen electrolyser developer Oort Energy are planning several small projects using a polymer electrolyte membrane electrolyser system patented by Oort.

The three parties will run initial proof of concept projects while evaluating the feasibility of implementing large-scale green hydrogen and ammonia production.

One of the pilot projects is intended to be hosted at the research and development unit at state-owned fertiliser producer OCP Group’s facilities in Jorf Lasfar.

US-headquartered Verde Hydrogen also plans to develop and commission a 2MW green hydrogen electrolyser plant project in Morocco, which it expects to complete next year.

Electric vehicle components

Recent developments also point to Morocco potentially becoming a global hotspot for the electric vehicles supply chain.

In July this year, China’s Guangzhou Tinci Materials Technology announced plans to build a lithium-ion battery materials plant in the country. The project capitalises on Morocco’s ample phosphorite ore resources.

The firm’s Singapore unit is expected to invest as much as $280m to set up a project company in the North African country to produce lithium-ion battery materials that can be exported to Europe.

In late May, the Moroccan government and Chinese-European company Gotion High-Tech also signed a preliminary agreement to establish a factory to produce electric car batteries and energy storage systems in the country.

The project is estimated to cost MD65bn ($6.3bn). The planned facility will have the potential to “create a comprehensive battery production solution” with a capacity of 100GW a year. 

Morocco’s minister-delegate in charge of investment, convergence and evaluation of public policies, Mohcine Jazouli, said the factory “will not only contribute to Morocco’s renewable energy and electric transport sector, but also solidify its reputation as an automotive industry powerhouse”.

Traditional energy

Meanwhile, along with its intense drive towards clean energy, Rabat is also making progress on traditional energy projects. The National Office of Electricity & Drinking Water (Onee) last awarded a thermal power plant deal in 2017. So it was a surprise when Onee recently tendered a five-year contract to build and operate an open-cycle 900MW thermal power plant in the country.

To be located along the M18 station point of the Maghreb-to-Europe gas pipeline, the proposed power generation plant will use dual-fuel gas turbines, with diesel fuel as a backup. Onee expects to receive bids for the contract by 5 September.

In addition, the procurement process is under way for a major seawater reverse osmosis (SWRO) desalination plant in Grand Casablanca, which has a design capacity of 548,000 cubic metres a day.

The build-operate-transfer contract is for 30 years, including a three-year construction period and 27 years of operation and management.

Making amends

To its credit, however, Morocco’s sustainable campaign has extended to other sectors that have traditionally used carbon-intensive processes and technologies.

The Washington-based International Finance Corporation (IFC) and OCP Group recently signed a €100m ($111m) green loan to build four solar plants to power OCP’s Morocco operations.

The four solar plants, with a combined capacity of 202MW, will be located in the mining towns of Benguerir and Khouribga, home to Morocco’s largest phosphate reserves.

As captive power plants, they will supply clean energy directly to OCP’s operations. The project is part of OCP’s $13bn green investment programme, which aims to increase its green fertiliser production and transition its operations to green energy by 2030.

More on Libya and Tunisia’s power and water sectors:

> Libya awards $1.3bn power plant contract
> Italy and Tunisia start $1bn Elmed prequalifications
> Acciona and Swicorp to develop 75MW wind project
> Suez signs $221m Tunisia wastewater PPP deal
> Tunisia tenders 1GW of solar IPP contracts

Libya and Tunisia

Earlier this year, the state-owned General Electricity Company of Libya (Gecol) awarded a joint venture of Qatar-based construction company Urbacon for Trading & Contracting and Egypt’s ElSewedy Electric an engineering, procurement and construction contract for a 1,044MW gas-fired power plant in Libya.

The contract is valued at €1.19bn ($1.29bn). The project is expected to be completed in 26 months and comprises six gas turbines from Germany’s Siemens Energy. The emergency power plant project is located in Zliten.

The power plant is expected to help address the endemic electricity shortage in the country. However, it does little to reduce Libya’s carbon emissions. At under 10MW, the country has the lowest renewable energy installed capacity in the Middle East and North Africa (Mena) region, against a total capacity of 11,000MW as of 2021, according to International Renewable Energy Agency data.

Tunisia, where renewable sources account for at least 8 per cent of its power generation capacity, has also made minor progress over the past few months.

A team of Spain’s Acciona and Saudi investment group Swicorp have partnered to develop a 75MW wind farm in Chenini in Tunisia’s Tataouine governorate.

The Spanish-Saudi team is understood to have agreed to the technical and financial terms of the project, as well as the land lease for installing 14 wind turbines in Djebel Dahar, located 80 kilometres from Djerba.

Each wind turbine will have a capacity of 6MW. The project will require an estimated investment of TD500m ($164m).

Tunisia’s wind potential is estimated at 8,000MW, according to its wind atlas and a study published in 2021 by the German international cooperation agency Giz.

In January this year, the African Development Bank Group approved a $27m and €10m ($10.67m) loan package to co-finance the construction of a 100MW solar power plant in Kairouan, Tunisia.

The approval covers $10m and another €10m from the bank, and a $17m concessional financing from the Sustainable Energy Fund for Africa, a special multi-donor fund managed by the bank.

Additional financing will come from the IFC, the World Bank Group and the Clean Technology Fund (CTF).

The 100MW Kairouan project was part of the first round of solar schemes under Tunisia’s concession regime, launched through an international tender by the Ministry of Industry, SMEs & Cooperatives in 2018.

A consortium formed by Dubai-headquartered Amea Power and TBEA Xinjiang New Energy Company won the contract to develop the scheme in December 2019.

The project is located in El-Metbassta, in the Kairouan North region, about 150km south of the capital, Tunis.

More on Algeria’s power and water sectors:

> Sonatrach seeks solar PV consultants
> Cosider tenders desalination contract
> Sonelgaz tenders 2GW solar schemes
> Wetico wins Algeria water desalination contracts

Algeria

Despite a highly tentative approach to adopting low-carbon energy, there are some promising projects in Algeria.

In March, state-owned utility Sonelgaz invited companies to bid for the contract to build 15 solar plants in the country with a combined capacity of 2,000MW.

The solar projects will be built in 11 locations across the North African state.

The locations and capacities of the proposed solar power plants include:

  • Bechar (Abadla): 80MW
  • Bechar (Kenadsa): 120MW
  • Msila (Batmete): 220MW
  • Bordj Bou Arreridj (Ras al-Oued): 80MW
  • Batna (Merouana): 80MW
  • Laghouat: 200MW
  • Ghardaia (Guerrara): 80MW
  • Tiaret (Frenda): 80MW
  • El-Oued (Nakhla): 200MW
  • El-Oued (Taleb Larbi): 80MW
  • Touggort: 130MW
  • Mghaier: 220MW
  • Biskra (Leghrous): 200MW
  • Biskra (Tolga): 80MW
  • Biskra (Khenguet Sidi Nadji): 150MW

In December 2022, Algeria’s Energy Transition & Renewable Energies Ministry (Shaems) also launched a tender to deploy 1,000MW of solar capacity. However, the status of the tender is unclear as of mid-2023.

https://image.digitalinsightresearch.in/uploads/NewsArticle/10991889/main4537.jpg
Jennifer Aguinaldo

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Chinese firm wins $265m Saudi hospital contract

    24 June 2026

    Zhejiang Construction International, the local subsidiary of Chinese contractor Zhejiang Construction Investment Group, has won a $265m contract to build the Prince Mohammed Bin Fahd University Speciality Hospital in Al-Khobar.

    Construction is expected to take three years from the start date.

    Prince Mohammed Bin Fahd University awarded the contract.

    Located in Al-Raja district, Al-Khobar, in Saudi Arabia’s Eastern Province, the hospital project will cover about 60,000 square metres.

    The contract covers the construction of a 10-storey hospital building, two five-storey auxiliary buildings connected by corridors and a basement.

    Work will include civil works, mechanical and electrical installation, curtain walling, landscaping, detailed design and the procurement of medical equipment.

    The award is the latest in a series of contracts secured by Chinese contractors from Saudi entities in recent months.

    Last week, MEED reported that Saudi Arabia’s Ministry of Municipalities & Housing awarded contracts worth more than SR1.9bn ($506m) to Chinese contractors for two residential developments in the kingdom.

    China Architectural Construction Corporation won the first contract, valued at SR875m ($233m), to build 2,010 housing units at the Al-Ruba residential project in Riyadh.

    China State Construction Engineering Corporation secured the other contract, valued at more than SR1bn ($266m), for the Al-Rasha Al-Faisaliah residential project in Dammam, comprising 2,426 housing units.

    GlobalData expects Saudi Arabia’s construction industry to record average annual growth of 5.2% in 2025-28, supported by investments in transport, electricity, housing and tourism infrastructure, as well as the $850bn-plus gigaprojects programme.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17412846/main.jpg
    Yasir Iqbal
  • Kuwait extends deadline for $718m drainage tender

    24 June 2026

     

    Kuwait’s Ministry of Public Works (MPW) has extended the deadline for a major drainage tender estimated to be worth about KD222m ($718m).

    The new bid submission deadline is 19 July.

    The tender scope covers the construction of rainwater drainage networks across the residential areas of Sabah Al-Ahmad, South Sabah Al-Ahmad, Al-Khairan and Al-Wafra.

    The MPW floated the tender on 22 March. The most recent deadline was 21 June.

    According to regional projects tracker MEED Projects, the works include the construction of a major concrete sewer, three collection basins and extensive stormwater drainage basins.

    Rainwater collection tanks will be connected through an independent network, with outlets to the sea via the Nuwaiseeb exit to manage overflow.

    The infrastructure will also filter pollutants such as oils, minerals and sediments to protect water quality and support environmental sustainability.

    The project aims to reduce surface runoff, prevent street and urban flooding, and improve groundwater recharge.

    Kuwait’s MPW currently has several contracts out for tender for infrastructure works across various parts of the country.

    Also, in March, the client released two additional tenders covering the construction of a treated water system in Kuwait’s southern region and another in Kuwait’s northern region.

    Bids for both projects are due by 28 June.

    Meanwhile, the MPW is planning to begin construction of the $3.3bn North Kabd sewage treatment plant, which has a planned capacity of up to 1 million cubic metres a day.

    China State Construction Engineering Corporation (CSCEC) won the contract to build the plant earlier this year.

    > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17411675/main.jpg
    Mark Dowdall
  • Contractor wins Emaar Dubai Harbour project deal

    24 June 2026

     

    Register for MEED’s 14-day trial access 

    Local construction firm Al-Sahel Contracting Company has won a contract to build The Bristol Luxury Hotels & Resorts project in Dubai.

    The contract was awarded by local real estate developer Emaar Properties.

    The Bristol Luxury Hotels & Resorts is located at Emaar Beachfront in Dubai Harbour.

    The project comprises a 54-storey mixed-use building with about 150 hotel keys and 227 one- to four-bedroom apartments.

    Enabling works have been completed by local firm Dutch Foundation.

    Dubai-based Mirage Leisure & Development is the project’s consultant.

    Construction is expected to be completed by 2028.

    The contract award follows Emaar’s appointment of Dubai-based Aroma International Building Contracting to build the Address Grand Downtown tower.

    The award also comes shortly after Emaar reported strong operating momentum in 2025, led by record property sales of AED80.4bn ($21.9bn), up 16% year on year.

    The company’s revenue backlog from property sales rose to AED155bn ($42bn), supporting visibility on future revenue recognition.

    Total revenue for 2025 reached AED49.6bn ($13.5bn), a 40% year-on-year increase. Earnings before interest, taxes, depreciation and amortisation grew 33% to AED25.6bn ($7bn), while net profit before tax rose 36% to AED25.7bn ($7bn).

    Emaar’s platform continued to support performance across property development, malls, hospitality, leisure and international operations.

    > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17411104/main.jpg
    Yasir Iqbal
  • Saudi Arabia launches new mineral exploration licensing round

    24 June 2026

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s Ministry of Industry & Mineral Resources (MIMR) has launched its tenth round of a mineral exploration licensing competition, qualifying 24 local and international companies and consortiums to participate.

    The exploration opportunities offered under Round 10 cover about 13,000 square kilometres across the regions of Medina, Mecca, Riyadh, Qassim and Hail. They encompass several highly prospective mineralised belts that are said to contain significant deposits of gold, copper, silver, zinc and nickel.

    One of the key areas offered in the round is the Nabithah-Ad Duwayhi (Dahlat Shabeb) Belt, which hosts the Ad-Duwayhi Mine, one of Saudi Arabia’s largest gold-producing operations, with annual production of approximately 180,000 ounces of gold.

    Other notable exploration zones include the Sukhaybarat-Al-Safra Belt, recognised for its gold and base metals potential and home to the Sukhaybarat and Bulghah mining operations, as well as the Al-Nuqrah Belt, known for substantial gold resources and volcanogenic massive sulphide mineralisation rich in copper and zinc.

    According to MIMR, 17 companies that previously qualified under Round 9 have retained their eligibility, while seven additional companies and consortiums successfully completed the Round 10 prequalification process.

    The newly qualified bidders in Round 10 are:

    • Anaam Al-Qarat for Trading / Sahara Mining Company consortium
    • Danakali / Masadar Al-Zamarda for Mining consortium
    • Power Metallic Mines 
    • PT ANTAM Tbk
    • Saudi Arabian Mining Company (Maaden)
    • Thurb Al-Hayya for Trading Company
    • Wildsky Resources

    The previously qualified participants from Round 9 are:

    • Al-Ghazal Al-Arabi Mining Company
    • Almasar Minerals Holding
    • Al-Tasnim Enterprises
    • Aurum Global Group
    • Batin Al-Ard for Gold Company
    • China National Geological and Mining Corporation
    • DesertEx 
    • Eqleed-Indotan Mining Company
    • Helderberg 
    • Jacaranda Minerals
    • Midana Exploration
    • Royal Road Arabia
    • Saudi Gold Refinery 
    • Sierra Nevada Gold
    • Sun Peak Metals
    • The Distinguished Consortium Mining Company
    • Vedanta 

    In a statement carried by the official Saudi Press Agency, MIMR said exploration licence competitions are conducted through a structured three-stage process designed to ensure transparency, competitiveness and equal opportunity for all participants.

    The process begins with prequalification assessments covering technical expertise and financial capability, followed by a site-selection phase through the ministry’s digital mining platform, Taadeen. Where multiple bidders compete for the same exploration site, the process advances to a public, multi-round bidding stage, with licences awarded based on exploration expenditure commitments and predefined evaluation criteria.

    The next phase of Round 10 will allow qualified bidders to select available exploration sites via the Taadeen platform, in accordance with established procedures that promote fair competition and enable companies to pursue opportunities aligned with their technical capabilities and investment strategies.

    ALSO READ: Aramco and Maaden seek to form joint venture

    “The continued participation of major international and regional mining companies reflects growing confidence in Saudi Arabia’s mining sector and the effectiveness of its transparent licensing framework,” MIMR said in its statement.

    Jarrah Aljarrah, a ministry spokesperson, said increasing participation in successive exploration licensing rounds demonstrates growing investor confidence in the kingdom’s mining ecosystem, supported by regulatory reforms, improved availability of geological data, transparent licensing mechanisms and a steadily expanding pipeline of exploration opportunities.

    Saudi Arabia’s metals and mining sector is pivotal to the country’s non-oil growth trajectory. Commercial exploitation of the kingdom’s mineral resource base – most of which remains untapped – is a key component of the Saudi Vision 2030 socio-economic transformation strategy.

    The kingdom took a first step towards realising the commercial potential of its mineral resources when it enacted the Mining Investment Law in 2021. Since the law came into effect, MIMR has awarded about 3,248 mining permits to local and foreign firms under its accelerated exploration initiative, including alone.

    Addressing the Future Minerals Forum in Riyadh in January 2024, Bandar Alkhorayef, the kingdom’s minister of industry and mineral resources, said Saudi Arabia’s natural resources are worth $2.5tn – an increase of more than 90% compared to the 2016 estimate.

    This near-doubling of natural resource estimates – which exclude fossil fuels and include phosphate, gold and rare earths – is expected to provide a stimulus to the kingdom’s nascent mining industry.

    ALSO READ: Maaden mineral resources grow by 7.8 million ounces
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17398549/main.jpg
    Indrajit Sen
  • Kuwait tenders oil manifold project

    24 June 2026

    State-owned upstream operator Kuwait Oil Company (KOC) has tendered a contract to construct remote header manifolds and associated works in the southern and eastern regions of Kuwait.

    A meeting with prospective contractors has been scheduled for 21 July 2026, and bids are due to be submitted ahead of a deadline on 20 September 2026.

    Manifolds are devices used in the oil sector to divide the flow of liquids from a single source to several outlets, or to collect liquids, or vice versa.

    Previously, a project with a similar scope in the same region was awarded to the Kuwaiti contractor Al-Ghanim International General Trading & Contracting.

    In 2016, it signed a contract worth $435m to construct remote header manifolds and associated works in the south and east Kuwait areas.

    The scope of that contract included design, procurement, construction and commissioning of 25 remote manifold stations and associated pipelines in south and east Kuwait using multi-phase pumps to deliver liquids to gathering centres.

    Kuwait’s oil fields are connected to more than 25 gathering centres, which serve as collection points for crude oil produced by several wells connected by flowlines, providing initial treatment by separating associated gas and removing salt.

    READ THE JUNE 2026 MEED BUSINESS REVIEW – click here to view PDF

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17409564/main.jpg
    Wil Crisp