In Morocco, renewables now account for more than 19% of market energy, up from 18.5% in 2020. Installed renewable energy capacity has exceeded 5 GW, which represents major growth over the past two decades. The government intends to reach 12 GW in 2030, which would represent more than half of Morocco's energy capacity. The Kingdom of Morocco expects 52% of its energy to come from renewable sources by 2030, and 80% by 2050.
In the context of the completion of this energy strategy, the House of Representatives adopted law No. 40.19 amending and supplementing law No. 13.09 relating to renewable energies and law No. 48.15 relating to the regulation of the electricity sector and the creation of the national authority of electricity regulation ("Law No. 40.19"), published by Dahir in the Official Bulletin of the Kingdom of Morocco on February 27, 2023.
Objectives
Law No. 40.19 strengthens Morocco's attractiveness in terms of renewable energy. This legislative framework aims to simplify the authorisation procedures, to reinforce the attractiveness of the renewable energy sector for private and international national investors, as well as to safeguard the economic and social equilibrium of the public players in the electricity sector.
Law No. 40.19 allows industries to produce their own energy for their operating needs. These independent power producers ("IPPs") can also sell their surplus to other consumers. However, only electrical energy produced from renewable energy sources can be marketed. Finally, Law No. 40.19 specifies the powers of the National Electricity Regulatory Authority ("ANRE").
Removal of the zoning requirement for solar projects
Law No. 40.19 simplifies the implementation of projects for the production of electrical energy from solar energy sources:
- solar projects with a maximum aggregate capacity of two megawatts or more no longer have to be built in specified zones established by the administration; even if
- this zoning obligation remains applicable to projects for the production of electrical energy from wind energy sources. These zones are set by the Order of the Ministry of Energy No. 2657-11 of 19 September 2011.
Revision of the regime for the commercialization of energy produced by IPPs
The legislator differentiates between sales on the medium voltage network, on the high voltage network and on very high voltage network:
- the IPP, connected to the medium voltage network, can now market electrical energy produced from renewable energy sources:
- to consumers or groups of consumers connected to the medium voltage electrical network; and
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to an electricity distribution system operator.
The terms and commercial conditions of purchase are set by the ANRE on the proposal of the distribution network operators.
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The IPP, connected to the medium voltage, high voltage and very high voltage grids, can now market the electrical energy produced from renewable energy sources to a network operator (within the limit of 40% of the total energy supplied to supply the customers located in their area of competence)
The terms and commercial conditions of purchase are set by the ANRE on the proposal of the national transmission grid operator.
Revision of the authorisation and declaration regime
Following the adoption of the Law No. 40.19, the following conditions are added to obtain the authorisation for the completion of an electric energy production facility from renewable sources:
- the applicant must be a legal entity whose head office is located in Morocco or which has subsidiaries in Morocco;
- the applicant must comply with the tax authorities and the National Social Security Fund (Caisse Nationale de Sécurité Sociale (CNSS));
- the applicant must not be in bankruptcy;
- a technical commission, presided by the Ministry of Energy, Mines and Environment, must give its assent, within two months, to the authorisation of completion; and
- in the event of a change of control of the IPP's shareholding or change of legal form, the IPP is subject to the authorisation of the administration under penalty of withdrawal of the authorization.
Measures relating to the preservation of grid stability
Law No. 40-19 introduces the concept of "reception" or "accomodation capacity" ("capacité d'accueil") of the national electricity grid:
- this is the maximum amount of installed capacity from renewable energy sources that the national electricity grid can accommodate without facing management constraints; and
- this maximum capacity will be set by the national transmission grid operator (ONEE) after approval by the ANRE.
In addition, the grid operator will be able to temporarily reduce or interrupt the injection of electrical energy produced from renewable energy sources:
- this adjustment will be made within a certain threshold set by regulation; and
- this adjustment will be carried out within the limits of a certain threshold set by regulation. Only an overrun of this threshold will give rise to financial compensation.
Measures relating to the export of electrical energy generated by IPPs
Law No. 40-19 strengthens the framework for the export of electrical energy:
- the export of electrical energy produced from renewable energy sources is subject to the technical opinion of the national electricity transmission grid operator and the agreement of the administration; and
- all export operations of electric energy produced from renewable energy sources are controlled by the ANRE and managed by the national electricity transmission grid operator.
Next steps
Law 40-19 was published in the Official Bulletin in Arabic of the Kingdom of Morocco on March 27, 2023 and provides for the adoption of specific implementing decrees in the coming months.
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