Signing of an agreement to accelerate Morocco’s energy transition
Hibapress
The Ministry of Energy Transition and Sustainable Development and the International Finance Corporation (IFC) signed an agreement on Monday in Rabat to update the national natural gas roadmap and structure a historic public-private partnership (PPP). for the development of a sustainable gas infrastructure, which will support the country in its energy transition towards achieving its objective of 52% of its installed electricity capacity from renewable energies by 2030.
In a press release, the ministry indicates that with its low carbon content and versatility, natural gas is an essential element of Morocco’s energy transition and decarbonization strategy, as it will allow greater penetration of intermittent renewable energies in the grid and will bring more stability and efficiency to the national electricity system, noting that natural gas is also essential to decarbonize industry and replace fuel oil and other fuels still used for electricity production and in energy-intensive industries.
In 2022, Morocco managed to optimize existing regional infrastructures to access the international LNG market for the first time in its history, underlines the same source, adding that the second phase of this strategy consists of strengthening domestic gas infrastructures, in order to to secure the gas supply and connect the input sources to the consumption basins.
IFC, a member of the World Bank Group, will assist the ministry in carrying out feasibility studies, structuring and managing a transparent and competitive tender process, in accordance with national laws, in order to select one or more partners private companies to develop, finance and operate the infrastructure, specifies the ministry.
“This project fits perfectly into our sustainable development and energy transition strategies, and it is essential to strengthening our energy security. We want to benefit from the capital and know-how of the private sector in order to build a gas market integrating best international practices. Ultimately, this modern and sustainable gas infrastructure will also be the backbone of the future hydrogen economy,” declared the Minister of Energy Transition and Sustainable Development, Leila Benali.
In 2005, IFC supported the Moroccan Ministry of Agriculture to design and implement the first PPP irrigation project in the world, in the citrus growing region of Guerdane, in the province of Taroudant. With this new initiative, IFC will help the government update the necessary gas infrastructure in the short and medium term to reflect the latest national and international developments. This work will also integrate the Kingdom’s prospects for access to hydrogen, biogas and synthetic gas, in the longer term, to promote inclusive and sustainable growth, the press release continued.
“Morocco is committed to the path to carbon neutrality, which requires rapidly increasing the share of renewable energy combined with other low-carbon energy sources and the sustainable exploitation of natural gas . This partnership will allow Morocco to accelerate the deployment of innovative models, such as public-private partnerships, and to put in place the infrastructure essential to the achievement of development objectives and the country’s ecological transition,” indicated IFC Vice President for Africa, Sérgio Pimenta, concludes.
