Morocco: A €420 Million Project for a 990 MW Gas Power Plant

Morocco is undertaking a major project with the construction of a 990-megawatt (MW) gas power plant, an investment estimated at €420 million. This initiative is part of a strategy to achieve energy independence while addressing the country’s growing demand for electricity. The Moroccan Capital Market Authority (AMMC) recently disclosed the financial details of the operation, which is built on a partnership structure involving several key players.

A robust financial structure

The project is supported by a 20% contribution from the National Office of Electricity and Drinking Water (ONEE), with 80% of the funds secured through structured loans and innovative financial instruments. Attijariwafa Bank and the African Development Bank (AfDB) are among the main lenders, complemented by two securitization funds: FT Nord Energy and FT Flexenergy. This arrangement diversifies funding sources and optimizes costs.

Supply based on existing infrastructure

The plant, primarily powered by natural gas imported via a pipeline from Spain, reflects a strategy to leverage existing infrastructure. In case of supply disruptions, diesel will serve as a backup fuel. This dual supply strategy aims to ensure energy resilience in a region marked by geopolitical tensions.

A strategic regional positioning

Since the end of the gas agreement with Algeria in 2021, Morocco has intensified its efforts to diversify its energy supply. This project is part of a series of initiatives designed to position the kingdom as a key regional energy player. At the same time, investments in renewable energy continue to grow but are not yet sufficient to meet all the needs of the electricity grid. This gas plant thus stands out as a pragmatic solution to stabilize supply.