The Competition Council has published a significant opinion on the future of Morocco’s electricity sector, calling for a refocusing of the National Office of Electricity and Drinking Water (ONEE), a gradual opening to competition, and a significant reduction in production costs. The goal is to transform electricity into an engine of economic competitiveness while following royal directives.
Over the past two decades, Morocco has strengthened its supply security and developed its energy infrastructure. The comprehensive rural electrification program has served nearly 13 million people, and investments in solar and wind energy have made the country a key regional player.
However, the current model shows its limitations. The system remains heavily dependent on fossil fuels and rigid supply contracts, resulting in significant debt for ONEE. According to the Council, this excessive centralization limits transparency and efficiency, with high costs associated with the broad distribution of public service, transport, and distribution, particularly in rural areas, where technical and financial losses remain substantial.
The opinion suggests refocusing the Office on its strategic missions: planning, transport, and supply-demand balance. Production and distribution would gradually be transferred to private actors and Regional Multi-Service Companies (SRM) for local management. A decommissioning structure would manage debts related to non-competitive contracts or social obligations. Unprofitable fossil contracts would be terminated with compensation, while still-competitive contracts would be maintained, and some agreements with Masen extended to optimize costs. The stated objective: to reduce the average cost of electricity production from 0.9 to 0.6 dirhams/kWh over twenty years.
Domestic and agricultural self-production, already adopted in over 50,000 installations, is also encouraged as a lever to transform consumers into producers and enhance energy resilience.
Ultimately, the Council emphasizes a vision spanning 20-40 years, aiming to reconcile the universality of public service, economic competitiveness, energy sovereignty, and the valorization of renewable resources.