With significant natural and geographical advantages, Morocco is accelerating the structuring of its green hydrogen sector, set to become one of the pillars of its energy and industrial transition. However, alongside these ambitious goals, considerable technical, electrical, and regulatory challenges loom. This is the assessment made by the National Electricity Regulatory Authority (ANRE) in its annual 2024 report.
A major institutional turning point was reached in December 2024 with the expansion of ANRE’s scope. Previously confined to regulating the electricity sector, the Authority now has its competencies extended to other strategic energy segments, including green hydrogen. This development is presented as a key lever to support the emergence of this new industry.
“In line with the dynamics initiated by Royal High Instructions, ANRE is preparing to actively contribute to the development of the hydrogen sector in Morocco,” emphasizes the Authority. It expresses its commitment to adapting its framework of intervention, strengthening its internal capabilities, and anticipating technological, economic, and regulatory changes related to this emerging market at both the national and international levels.
The first challenge identified is the impact on the national electricity system. The production of green hydrogen relies on particularly energy-intensive electrolysers, designed to split water into hydrogen and oxygen. This energy consumption is compounded by the needs related to the transformation, storage, and transport of the energy vector.
In some regions, freshwater scarcity could necessitate the use of seawater desalination, a solution that is also highly electricity-consuming. ANRE highlights that the extent of this pressure will largely depend on the chosen production models.
Internationally, several configurations coexist: off-grid electrolysers powered directly by renewable installations, hybrid systems combining renewable energies and grid connectivity, or fully grid-connected electrolysers. The latter model, more flexible, however, imposes strict traceability and certification mechanisms to ensure genuinely decarbonized production. All these technological choices will have direct implications for planning, investment, and regulation of the electricity grid.
The choice of installation sites for production units presents another strategic issue. Two main options emerge. The first involves placing electrolysers near renewable energy production areas, which then requires transporting hydrogen or its derivatives to industrial or port areas. The second favors a location close to end users or export ports, thus requiring the delivery of large amounts of green electricity.
Transporting and storing hydrogen also presents specific challenges. Unlike electricity, hydrogen can be transported in various forms—gaseous, liquid, compressed, or converted into derivatives like ammonia—via pipelines, cryogenic containers, or specialized ships. This technical diversity implies heavy infrastructure, high costs, and a multitude of actors.
Depending on the segments, these activities may fall under either natural monopolies or markets open to competition. For monopolistic infrastructures, ANRE believes that a regulatory framework is essential to ensure equitable, transparent, and non-discriminatory access while ensuring efficient investment development.
Aware of the magnitude of the challenges, ANRE expresses its ambition to implement agile and gradual regulation based on solid techno-economic criteria. The objective is twofold: to support the gradual deployment of infrastructures while structuring a viable market that is attractive to investors and compatible with the Kingdom’s climate goals.
This regulatory dynamic is part of a broader process of structuring the sector. Since 2019, several milestones have been established, starting with the creation of the National Green Hydrogen Commission, responsible for overseeing preliminary studies. In January 2021, the national roadmap set the strategic orientations of the sector, followed by the launch of the GreenH2 Morocco Cluster, bringing together industry players, researchers, and institutions around innovation and skill development.
In November 2022, Morocco began developing a “Moroccan Offer” dedicated to green hydrogen, covering the entire value chain. This initiative was reinforced two years later by a circular from the Prime Minister detailing governance, mechanisms to support investors, and procedures for monitoring strategic projects.
As international competition intensifies around green hydrogen, Morocco’s challenge will now be to transform its structural advantages into concrete industrial achievements while establishing regulation capable of securing investments, maintaining the balance of the electricity system, and sustainably embedding the sector within the national energy landscape.