Description: 

A clean energy project seeking to utilize solar photovoltaic (PV) plants to improve ONEE’s capacity to supply and dispatch clean electricity to a targeted area.

Background:

In 2011, Morocco met 95.6% of its primary energy demand through imported fossil fuels. Despite its near complete dependency on fossil fuels, Morocco has adopted ambitious renewable energy plans to achieve 42% of its power supply from renewable resources (14% from solar) by 2020. The Clean and Efficient Energy Project will allow the Office National de l’Electricité et de l’Eau Potable’s (ONEE) 400 MW solar PV to complement the 2,000 MW solar plan under development by the Moroccan Agency for Solar Energy (MASEN).

The project, in line with Morocco’s green growth path, will play a key role in achieving these objectives and meeting the country’s increasing energy demands through the implementation of solar PV plants and a modernization of its electricity grid. Made possible by a $23.95 million allocation from CTF, the project will ensure reliable and clean electricity consumption for local communities in Morocco. Total costs are estimated at $158.31 million, with project completion expected by November 2020.

Objectives and Outputs:

The Clean and Efficient Energy Project will introduce the first mid-size grid connected solar PV in Morocco and will contribute to avoiding an estimated 10 million tons of CO2 by 2042. Through a 3-phase strategy, ONEE will develop 400 MW of grid-connected decentralized solar PV at 16 sites located at the end of high-voltage transmission lines. The first phase of the project is financed by CTF and IBRD.

The first phase of the project, financed by CTF and IBRD, will develop 25MW solar plants near the towns of Erfoud, Missour, and Zagora, which are affected by frequent disruptions due to distance from generation plants in the north and western shores of Morocco. About 120,000 people living in and around these three remote towns at the foot of the Atlas Mountains will have a more reliable supply of power. Access to this modern energy will generate positive effects not only in health and education, but in unlocking the economic potential of the region by providing reliable energy for tourism, agriculture, and crafts industries. Other regional neighbors will benefit from the consolidation of Morocco as a green demonstration for similar projects.

This project will finance the first phase of ONEE’s solar PV program as a public investment, to research the impact on the grid and power system. Following the first phase, the project will transition ONEE towards private sector financing for subsequent phases. The project is expected to help prevent 78,018 tons of CO2 emissions per annum, and 1.95 million tons over its lifetime. CTF resources are expected to leverage $129 million in co-financing.

IBRD Project Portal

Cover Note | Project Document | Independent Review | Proposed Decision
Approved on June 28, 2014 (Approved Decision)  
Approved amount(s): 
USD 23.95 million

 

Project Preparation Grant
Proposed Decision
Approved on January 28, 2014
Approved amount(s): 
USD 1.05 million