This financing is part of a high-level visit led by Ioannis Tsakiris, Vice-President of the EIB, Christiane Laibach, member of the KfW Executive Board, and Daniele Dotto, Deputy Head of the EU Delegation, at the site of the 270 MW Jbel Lahdid wind farm, developed by ONEE, in the province of Essaouira, according to a joint statement.
It aims to improve the integration of renewable energies through the strengthening of Morocco’s electricity network, as part of their strategic cooperation to support the Kingdom’s energy transition.
Thus, the new financing, structured and led by the EIB (170 million euros) alongside the KfW on behalf of the German government (130 million euros), will support a series of investments to be carried out by ONEE, aimed at modernizing and extending the national electricity transmission network over 731 km, allowing for an increase in the evacuation capacity of the transmission network by 1,850 Mega Volt Amperes.
The goal is to facilitate the integration of new renewable capacities into the electrical system and to support ONEE in its role as network manager, in line with Morocco’s energy and climate objectives.
These investments will help improve supply security, reduce greenhouse gas emissions (390,000 t CO2e/year by 2030), and stimulate growth in several regions of the country, while strengthening the resilience of the national network in the face of increasing demand and climate hazards.
This new financing is part of an ambitious dynamic led by ONEE, a key player in the Kingdom’s energy transition, the same source emphasizes, revealing that the Office has launched an equipment plan of 220 billion dirhams by 2030, of which 177 billion is intended for the electricity sector, aiming to increase the installed capacity of renewable energies to 56% by the end of 2027.
Among the structuring projects are the development of an additional 12.5 GW of renewable capacities, the strengthening of the transmission network over more than 700 km, and the implementation of a 3000 MW electric highway with a length of 1400 km between the South and the Center of the Kingdom. These investments enhance the country’s energy security, support the decarbonization of the economy, and position Morocco as a regional model for sustainable energy.
Commissioned in October 2024, the Jbel Lahdid wind farm is the fourth project of the integrated wind energy program of 1000 MW, it is noted from the same source, recalling that this project was co-financed by loans of 200 million euros each from the EIB and KfW on behalf of the German government, as well as a grant of 15 million euros from the EU.
With a capacity of 270 MW, the farm is expected to produce about 952 GWh of renewable electricity per year, equivalent to the annual consumption of 1.2 million inhabitants. It illustrates the concrete impact of European cooperation in implementing the Kingdom’s climate commitments.
This initiative demonstrates the capacity of Team Europe to mobilize financial and technical resources consistent with the priorities of its partners, perfectly aligned with the Morocco-EU Green Partnership, the European Green Deal, and Morocco’s ambitions for energy transition. Furthermore, the EIB loan benefits from EU support, which through its guarantee mechanism, thus improves financing conditions and enhances the impact of the operation.
In parallel, the EIB and KfW have concluded an agreement for enhanced cooperation under the Mutual Reliance Initiative (MRI), which assigns the EIB the role of lead for the project’s processing and monitoring. This mechanism simplifies procedures for Moroccan authorities and ensures a faster, coordinated, and more effective implementation of co-financed operations.
This role is part of a long-term trust relationship built between the EIB and ONEE, with 23 projects already jointly financed. It reflects a shared willingness to enhance the impact of investments in favor of a more sustainable, resilient, and inclusive energy system.
In this regard, Mr. Tsakiris noted that the Jbel Lahdid farm illustrates the strength of the partnership between Morocco and European institutions in the field of energy transition. “With this new support of 170 million euros, we are supporting the extension of the national electricity network, an essential lever to strengthen the link between green energy production and electricity transport infrastructures, in service of a sustainable energy transition and the development of the country,” he emphasized.
He added that by taking on the role of lead in the framework of the Mutual Reliance Initiative, the EIB relies on three decades of cooperation with ONEE to provide a more effective and better-coordinated partnership framework. “This is a concrete example of the Team Europe approach in service of our clients,” he stated.
For her part, the EU Ambassador, Patricia Llombart Cussac, indicated that “this program is a new demonstration of the concrete achievements of our Morocco-EU Green Partnership and the ongoing commitment of Team Europe to financing these key infrastructures for the Moroccan energy transition.”
On his side, the German Ambassador Robert Dölger noted that Germany and Morocco have built a solid and trustworthy partnership in the energy sector, which serves as a model for international cooperation in climate and sustainable development.
“With this co-financing agreement, we are taking a major new step towards achieving our ambitious climate goals,” he noted, adding that together “we are transforming a shared political vision into concrete actions – through joint investments in solar energy, wind energy, and the development of electricity networks.”
Thanks to this agreement, Germany is now contributing over 3 billion euros to the energy transition and climate resilience in Morocco, he noted, adding that this partnership strengthens global responsibility and paves the way for a greener and more resilient future.
For her part, Christiane Laibach, member of the KfW Executive Board, emphasized that the 130 million euro Renewable Energy Integration Program is an important step in the ongoing commitment to energy transition in Morocco, noting that it supports the creation of a digital and robust electricity network for a future where the majority of electricity will come from renewable sources.
Reliable long-term partnerships, like the one established with Morocco and ONEE, are essential to achieve the transition to a green economy, she stated, noting that KfW supports Morocco’s contribution to international climate protection and opens opportunities for the German and European industry.
The Director General of ONEE Tarik Hamane, in turn, indicated that “under the enlightened leadership of His Majesty King Mohammed VI, the Kingdom of Morocco is resolutely pursuing its energy transition towards a sustainable and inclusive model,” considering that the new financing of 300 million euros, mobilized by the European Investment Bank, KfW, and the EU, testifies to the strength of our strategic partnerships and the trust placed in ONEE.
This support will contribute to the efforts made to accelerate the modernization and strengthening of our national electricity network, thus facilitating the integration of new renewable energy capacities, Mr. Hamane noted, adding that with an installed capacity of 12 GW, of which more than 45% comes from renewable energies, and a transmission network of more than 30,000 km, ONEE is fully committed to achieving national renewable energy objectives by 2030.
These advances reinforce Morocco’s position as a key energy crossroads between Africa and Europe and a regional and continental leader in energy transition, actively contributing to energy security, the decarbonization of the economy, and the sustainable development of the Kingdom, he expressed.
It should be recalled that in October 2022, the European Union and Morocco concluded a historic partnership aimed at promoting the transition to more sustainable production and consumption patterns. This “Green Partnership” strengthens the existing partnership between Morocco and the European Union, placing greater emphasis on public policies related to sustainability and supporting the reforms undertaken by Morocco, particularly in the field of renewable and new energies.
On the sidelines of COP 28, held in December 2023 in the United Arab Emirates, the EU and Morocco launched the “Green Energy” program to enhance climate action and Morocco’s energy transition. This program particularly supports the acceleration of the decarbonization of the energy system by supporting reforms aimed at opening the electricity market, facilitating self-production, and strengthening ties with the European market.
MAP