$250 million: World Bank approves funding for clean energy project in Morocco

Written by: Mohamed Ragab

The World Bank has agreed to provide financing of $250 million to support a new clean energy project in Morocco, in a move aimed at enhancing energy security, accelerating the transition to renewable energy sources, and improving the efficiency of the national electricity grid.

The decision comes days after the World Bank announced the lifting of restrictions that limited financing for some energy projects, as part of a review of its policy on financing climate and energy projects, allowing greater flexibility for countries to meet their development needs while maintaining low-emission transition goals.

Updating the electricity grid and integrating renewable energies

The project aims to develop the infrastructure of the electricity sector in Morocco by modernizing the power transmission network and increasing its capacity to accommodate larger amounts of electricity produced from renewable sources, such as solar and wind power.

The World Bank affirmed that the project will contribute to improving the reliability of electricity supply and increasing network efficiency, supporting Morocco's efforts to raise the contribution of clean energy to the national energy mix.

Morocco continues its leadership in renewable energy

Morocco is one of the most prominent African and Arab countries in investing in the renewable energy sector, having launched a number of major projects in solar and wind energy in recent years, as part of a strategy to reduce reliance on fossil fuels and enhance energy security.

The Kingdom aims to increase the share of renewable energy sources to more than 52% of installed electricity capacity by 2030, through the implementation of new projects, the expansion of production capacity, and the connection of these projects to the national grid.

Boosting Investment and Reducing Emissions

The World Bank indicated that the new financing will enhance Morocco's ability to attract more investments in the clean energy sector, and will also support the reduction of greenhouse gas emissions, in line with the Kingdom's commitments to address climate change.

The project is also expected to contribute to improving energy efficiency, reducing long-term electricity production costs, and strengthening the Moroccan economy's ability to withstand fluctuations in global energy prices.

A continued partnership to support sustainable development

This funding comes as part of the ongoing partnership between Morocco and the World Bank to support sustainable development projects, particularly in the areas of energy, infrastructure, and climate action.

According to reports, the project enhances Morocco's position as a regional clean energy hub and supports its ambition to become a platform for the production and export of electricity and green hydrogen to European and African markets in the coming years.