Morocco: Morocco and the UAE have formalised a $14 billion investment to build renewable energy infrastructure and four desalination plants, aiming to generate 3,000 MW of clean power and over one million cubic metres of water annually, addressing critical water scarcity and energy needs by 2030.
Morocco and the United Arab Emirates have recently formalised a substantial $14 billion investment agreement aimed at fostering advancements in renewable energy and water security. This landmark agreement involves several key stakeholders, including Morocco’s state utility company ONEE, the Mohammed VI Investment Fund, TAQA Morocco—which is part of Abu Dhabi’s TAQA Group—and Nareva. Central to the plan is the establishment of a 1,400-kilometre high-voltage direct current transmission line that will connect Dakhla, in the southern region, with Casablanca and other significant northern urban centres. This infrastructure is designed to facilitate the transmission of up to 3,000 megawatts of renewable energy, which will come from a combination of 1,200 megawatts of newly installed solar and wind projects. Additionally, the agreement encompasses the development of four significant desalination plants in regions such as Tanger, Nador, Tiznit, and Tan-Tan—collectively capable of producing over one million cubic metres of water annually to bolster supply in the southern areas.
This investment is particularly significant in light of Morocco’s pressing need to secure sustainable water resources. The country has been proactive in addressing this issue through various initiatives, including a recent €200 million ($211 million) loan from the European Bank for Reconstruction and Development (EBRD) aimed at constructing two new desalination facilities for the OCP Group, Morocco’s leading phosphate-based fertiliser producer. These facilities are expected to ensure a reliable water supply essential for fertiliser production, particularly as global demand for sustainable agricultural solutions intensifies.
In a broader context, the partnership between Morocco and the UAE is part of a wider strategy to enhance water security and renewable energy capacity across the region. The agreements align with Morocco’s ambition to build eight new desalination plants powered by renewable energy—a move aimed at significantly increasing the country’s water supply and easing pressure on traditional water sources. By 2030, Morocco plans to generate approximately 1.3 billion cubic metres of fresh water from desalination processes, underscoring the urgency of its water scarcity challenges.
Strategic collaborations extend beyond this agreement. For instance, the notable French energy firm Engie has entered into a preliminary agreement with OCP Group that could lead to investments up to €17 billion ($18 billion) in renewable energy initiatives, further illustrating the international focus on Morocco’s renewable potential. Furthermore, UAE companies have expressed interest in developing irrigation projects in Morocco, demonstrating a concerted effort to utilise desalinated water for agricultural purposes, especially amid climate discussions at events like the ongoing COP28 climate summit in Dubai.
With these initiatives, Morocco is positioning itself as a pivotal player in the renewable energy and water management sectors, reflecting a growing recognition of the interlinked challenges of energy production and water security in an era increasingly dominated by climate-related issues. The concerted efforts of both local and international stakeholders underscore the importance of collaboration in tackling these pressing challenges in the MENA region.
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Source: Noah Wire Services
- https://www.mercomindia.com/mena-weekly-roundup-morocco-uae-sign-14-billion-deal-to-boost-renewables – Please view link – unable to able to access data
- https://www.mercomindia.com/mena-weekly-roundup-morocco-uae-sign-14-billion-deal-to-boost-renewables – Morocco and the United Arab Emirates have signed a $14 billion investment agreement focusing on renewable energy, water security, and advanced infrastructure. The agreement’s key stakeholders include Morocco’s ONEE, the Mohammed VI Investment Fund, TAQA Morocco (part of Abu Dhabi’s TAQA Group), and Nareva. The agreement comprises a 1,400-km high-voltage direct current transmission line to link Dakhla in the south with Casablanca and major northern cities. It will transmit up to 3,000 MW of renewable energy from 1,200 MW of new solar and wind projects. The agreement also includes four major desalination plants, with capacities of 50 million m³/year in Tanger, 300 million m³ in Nador, 350 million m³ in Tiznit, and one plant in Tan-Tan to support the southern regions.
- https://www.agbi.com/finance/2024/11/morocco-secures-211m-loan-to-improve-water-security/ – The European Bank for Reconstruction and Development (EBRD) has approved a €200 million ($211 million) loan to Morocco’s phosphate-based fertiliser producer OCP Group to enhance water security by developing new desalination facilities. The funding will support the construction of two seawater desalination facilities for OCP Group at its industrial complexes in El Jadida and Safi. With a combined capacity of 35 million cubic meters annually, these facilities will ensure a sustainable water supply for fertiliser production, addressing the rising global demand for sustainable agricultural solutions critical to food security.
- https://www.cnbcafrica.com/wire/652763/ – Morocco’s phosphates and fertilizer giant OCP and French energy firm Engie signed a preliminary agreement on Monday for projects that could generate investments in Morocco worth up to 17 billion euros ($18 billion) in desalination, renewable energy and green hydrogen, a source close to the deal said. The strategic partnership was signed during the visit by French President Emmanuel Macron to Rabat, as part of a series of business agreements following improved political ties between the two countries.
- https://www.agbi.com/agriculture/2023/12/uae-companies-to-develop-irrigation-project-in-morocco/ – Dubai-based Metito Utilities and Tahliya Group, a UAE-based infrastructure company in Africa, have signed an agreement to develop an irrigation project using desalinated water in Morocco. The desalination projects will be powered by renewable energy, the companies said in a statement released during the Cop28 climate summit taking place in Dubai.
- https://www.waterbriefingglobal.org/acwa-power-14-billion/ – ACWA Power – the world’s largest private water desalination company – has announced it has achieved financial closure for ten key projects with a combined value of over $14 billion, marking the largest financial close in the company’s history. These 10 projects span across Saudi Arabia, Egypt, and Uzbekistan, covering a wide range of sectors, including renewables, water desalination, and green hydrogen production. Among the projects is the $8.5 billion NEOM Green Hydrogen project, currently under construction in Saudi Arabia, which is set to become the world’s largest utility-scale green hydrogen production facility.
- https://www.elibrary.imf.org/view/journals/002/2024/324/article-A003-en.xml – The projects related to seawater desalination and the reuse of treated wastewater are heavily energy intensive. In addition to the 12 existing desalination plants, Morocco plans to build 8 new desalination plants—using renewable energy sources—to increase water supply and alleviate pressure on conventional water sources. The country aims to produce 1.3 billion cubic meters of fresh water from desalination by 2030 and is pursuing the reuse of treated wastewater and the construction of dams.
