{"id":7279,"date":"2023-08-04T16:05:41","date_gmt":"2023-08-04T10:35:41","guid":{"rendered":"https:\/\/ijpiel.com\/?p=7279"},"modified":"2023-08-04T16:18:08","modified_gmt":"2023-08-04T10:48:08","slug":"moroccos-energy-oasis-an-analysis-of-renewable-energy-legislation-overhaul","status":"publish","type":"post","link":"https:\/\/ijpiel.com\/index.php\/2023\/08\/04\/moroccos-energy-oasis-an-analysis-of-renewable-energy-legislation-overhaul\/","title":{"rendered":"Morocco\u2019s Energy Oasis: An Analysis of the Renewable Energy Legislation Overhaul"},"content":{"rendered":"\n

\n \n Abstract<\/span>\n <\/strong>\n<\/p>\n\n\n\n

\nMorocco\u2019s renewable energy market holds a prominent position in Africa, boasting strategic\ngeographical advantages and abundant renewable resources. Considering how Morocco\u2019s\nrenewable energy market has witnessed significant growth and development, this Blog Post\nexplores the ever-evolving legal landscape for renewable energy in Morocco and the\nestablishment of legislative and regulatory frameworks since 2009, laying the foundation for\nenergy strategy implementation. Recent legislative reforms include Law No. 40-19, focusing on\ngrid capacity, facilitation of solar energy projects, system service fees, electricity purchase\nmechanisms, and renewable energy operators\u2019 obligations. Additionally, Law No. 82-21\nintroduces regulations on the self-generation of electricity, encompassing grid access, energy\nstorage, surplus energy sales, and origin certificates for self-generators. These reforms aim to\ncreate a favorable environment for developing and integrating renewable energy into Morocco\u2019s\nenergy mix.\n<\/span><\/p>\n\n\n\n

\nThus, this Blog Post showcases that Morocco is demonstrating its commitment to\ndecarbonization efforts and the transition to a more sustainable energy sector by implementing\nthese new regulations. Morocco\u2019s focus on clean energy sources contributes to environmental\ngoals and positions Morocco\u2019s national economy as competitive and itself as a leading player in\nAfrica\u2019s renewable energy sector.\n<\/span><\/p>\n\n\n\n

\n \n 1. Introduction<\/span>\n <\/strong>\n<\/p>\n\n\n\n

\nMorocco has undeniable assets that position it among the leading renewable energy markets in\nAfrica. According to the 2021 Energy Transition Index<\/a>, it ranks fourth in the African continent,\nbehind Ghana, Namibia, and Kenya. This is because of Morocco\u2019s strategic geographical\nlocation at the crossroads of Europe, Africa, and the Middle East, and its political stability,\nabundant renewable energy resources such as solar and wind energy.\n<\/span><\/p>\n\n\n\n

\nThe country is actively pursuing ambitious goals for reducing Carbon Dioxide (CO 2 ) emissions\nand has actively engaged in international climate discussions and initiatives, showcasing a firm\ndedication from both the Moroccan King and the Government to assume a substantial role. Following its hosting of the Conference of the Parties (COP 22) in 2016, Morocco has already\nachieved<\/a> renewable energy installed capacity exceeding 34% by 2020, with projections aiming for\n52% by 2030 and 80% by 2050.\n<\/span><\/p>\n\n\n\n

\nThe energy sector is considered a key driver of economic development and social progress under\nthe guidance of an ambitious royal vision. It has implemented the \u201cNew National Energy\nStrategy\u201d (la nouvelle strat\u00e9gie \u00e9nerg\u00e9tique nationale), adopted in March 2009. The National\nEnergy Strategy aims to increase the share of renewable energy in Morocco\u2019s energy mix to 52%\nby 2030<\/a>. Initiatives \u2014 such as the \u201cMoroccan Solar Plan\u201d launched in November 2009 in\nOuarzazate, the \u201cMoroccan Integrated Wind Energy Program\u201d in June 2010 in Tangier, and\nmost recently, the \u201cGeneration Green 2020-2030\u201d strategy in 2020 \u2014 intended to build upon\nthe achievements of the \u201cGreen Morocco Plan\u201d initially launched in 2008. Furthermore, all these\nplans and strategies are part of the \u201cNew Development Model\u201d (Nouveau Mod\u00e8le de\nD\u00e9veloppement) that aims to support the global energy transition towards cleaner and more\nsustainable energy sources. Therefore, these national plans, strategies, and models highlight\nMorocco\u2019s efforts to foster a sustainable global energy transition.\n<\/span><\/p>\n\n\n\n

\n \n 2. The Legal Landscape for Renewable Energy in Morocco: An Ever-Evolving\nFramework<\/span>\n <\/strong>\n<\/p>\n\n\n\n

\nSince 2009, a corpus of legislative and regulatory texts has been established to serve as the\nfoundation for implementing the energy strategy in Morocco. This includes Law No. 13-09<\/a> on\nrenewable energy, enacted by Dahir No. 1-10-16 on Safar 26, 1431 (11 February 2010),\npublished in the Official Gazette No. 5822 on Rabii II 1, 1431 (18 March 2010). This law has\nbeen amended and supplemented by Law No. 58-15<\/a>, which encouraged private initiatives in\nproducing, marketing, and exporting renewable energy.\n<\/span><\/p>\n\n\n\n

\nIn the context of the Royal High Directives and Morocco\u2019s energy transition objectives, on 27\nFebruary 2023, two major Bills related to the renewable energy sector were published in the\nOfficial Gazette of Morocco following their adoption by the Parliament. These laws are Law No.\n40-19<\/a>, amending and supplementing Law No. 13-09 on renewable energy<\/a>, and Law No. 82-21,\nregulating the self-generation of electric energy<\/a>. The latter represents a significant milestone in\nthe evolution of Morocco\u2019s national electricity sector, aiming to give a new impetus to\ndecarbonization and enhance the competitiveness of Morocco\u2019s national economy.\n<\/span><\/p>\n\n\n\n

\n \n A. Main Highlights of Bill No. 40-19:<\/em><\/span>\n <\/strong>\n<\/p>\n\n\n\n

\nThe recent legislative reforms in Morocco\u2019s energy sector encompass various aspects. Firstly<\/em>, the\nlaw determines the capacity of the national grid to accommodate renewable energy\nsources<\/strong> without facing operational limitations. This capacity is calculated by Morocco\u2019s national\nelectricity transmission grid operator, l\u2019Office Nationale de l\u2019Eau et de l\u2019Electricit\u00e9 (ONEE) \u2013\nNational Office of Electricity and Water, and is disclosed by l\u2019Autorit\u00e9 Nationale de R\u00e9gulation\nElectrique (ANRE) \u2013 the National Electricity Regulatory Authority, prior to 31 January each\nyear.\n<\/span><\/p>\n\n\n\n

\nThe reform also aims to facilitate solar energy projects by removing the zoning requirement for\nprojects with a capacity of 2 Megawatts (MW) or more, while wind energy projects must still\ncomply with specific zones. Within the same context, a system service fees<\/strong> have been\nintroduced to cover essential services for the stability of frequency, voltage, and exchanges with\nadjacent countries and managing the intermittency of renewable energy sources at various\nvoltage levels (extra high, high, medium, and low) by Morocco\u2019s national electricity grid operator\n(ONEE). According to this reform, all renewable energy operators utilizing the national grid are\nrequired to pay a fee for grid usage, the amount of which is determined by ANRE and should\ninclude costs associated with system services.\n<\/span><\/p>\n\n\n\n

\nThe mechanism for selling electricity to the distribution network operator<\/strong> is outlined as\nper Article 26, allowing for the purchase of up to 40% of the annual electricity production from\nrenewable energy installations, which is subsequently supplied to customers within the\noperational jurisdiction of the respective distribution network operator. The detailed procedures\nfor these acquisitions will be determined through a dedicated implementing decree.\n<\/span><\/p>\n\n\n\n

\nThe reform allows Morocco\u2019s renewable energy operators to obtain an origin certificate<\/strong>\nverifying the renewable nature of their electricity. Also, the law requires every renewable energy\noperator to abide by the principle of national preference<\/strong> in their supply, construction, and\nservice contracts. The specific rules for this requirement will be detailed in implementing\ndecrees.\n<\/span><\/p>\n\n\n\n

\nRegarding the aspect of energy storage<\/strong>, the law permits renewable energy operators to build\nenergy storage facilities and take advantage of storage services. The requirements for\nconstructing such facilities and accessing storage services will be detailed in a specific\nimplementing decree. Additionally, guidelines for exporting renewable energy<\/strong> are introduced,\nrequiring a technical opinion from Morocco\u2019s national electricity transmission network operator\nand approval from the competent authority (Ministry of Energy Transition and Sustainable\nDevelopment). The exportation will be facilitated through cross-border interconnections with\nneighboring countries using the national electricity transmission network, as per the agreements\nregulating interconnections between the relevant countries. The export transactions will be\ngoverned by an agreement that outlines the technical and economic conditions for accessing\nelectrical interconnections, including the applicable loss rate, transit tariffs, electricity prices, and\nsystem services.\n<\/span><\/p>\n\n\n\n

\n \n B. Law No. 82-21 \u2013 Introduction of A Legislative Framework on Self-Generation of\nElectricity:<\/em><\/span>\n <\/strong>\n<\/p>\n\n\n\n

\nLaw No. 82-21 on self-generation of electricity regulates the nature of the grid, voltage levels,\nand the capacity of the installation used for self-consumption. This law also introduces, for the\nfirst time, the right to access electricity storage services, in addition to the right to sell electricity\nexcess to grid operators. Furthermore, it expands the scope of access to the national electricity\ngrid, enabling the transportation of electricity from the production site to the consumption site.\n<\/span><\/p>\n\n\n\n

\nThe law introduces new self-generation schemes based on the capacity of the installation and the\nconnection of the production site or final end-use sites to the grid. Under the provisions of\nArticle 3 and subsequent Articles, the new rules include declaring off-grid self-generation\ninstallations to the Ministry of Energy Transition and Sustainable Development. Furthermore,\nself-generation installations below a specified regulatory threshold must be declared by the\nelectricity distribution network operator.\n<\/span><\/p>\n\n\n\n

\nOn the other hand, self-generation installations must have a capacity of at least 5 MW to access\nMorocco\u2019s national grid and must obtain prior authorization from Morocco\u2019s national electricity\ngrid operator. Additionally, self-generation installations with a capacity equal to or greater than 5\nMW require prior authorization from the competent authority after consultation with the\ntechnical opinion of the national electricity grid operator. If the installation is connected to the\nmedium-voltage grid, the opinion of the relevant electricity distribution network operator must also be sought. The specific procedures for obtaining authorization will be defined through\nregulatory means, ensuring a streamlined and transparent process for self-generators.\n<\/span><\/p>\n\n\n\n

\nLaw No. 82-21 introduces several provisions for the self-generation of electricity. Self-generators\nare allowed to construct energy storage<\/strong> installations and utilize storage services under Article\n15. The conditions for constructing these installations and accessing storage services will be\nspecified in an implementing decree. Moreover, self-generators connected to the national\nelectricity grid are required to pay system service fees<\/strong>, as stated in Article 13. The fees are to be\npaid to Morocco\u2019s national electricity grid operator, with the specific amount determined by the\nANRE at a later date.\n<\/span><\/p>\n\n\n\n

\nWith regard to the surplus energy, self-generators have the possibility to sell up to 20% of\ntheir annual self-generation production surplus to Morocco\u2019s national electricity grid\noperator<\/strong>, as authorized by the law. The ANRE will determine the purchase price for the surplus\nenergy. Additionally, self-generators will have the opportunity to obtain an origin certificate<\/strong>\ncertifying the renewable sources of their electricity production. The procedures and responsible\nentity for issuing the certificate will be outlined in an implementing decree.\n<\/span><\/p>\n\n\n\n

\n \n 3. Analysis<\/span>\n <\/strong>\n<\/p>\n\n\n\n

\nThe introduction of Laws No. 40-19 and 82-21 undoubtedly reflects a sustainable approach\naimed at facilitating the development of a low-carbon national economy and fostering an\ninvestment-friendly environment. However, it is crucial to acknowledge the shortcomings within\ncertain provisions of Law No. 82-21 that exhibit contradiction, as highlighted by energy expert\nMr. Amin Bennouna<\/a>. While Article 1 of Law No. 82-21 defines its applicability to any form of\n\u201cself-generation of electricity, regardless of the source of production,\u201d the Moroccan legislature\ncontradicts itself when it comes to the definition of \u201cabsorption capacity\u201d stated in Article 2 of\nthe Law No. 82-21, which is limited to the electricity generated from renewable energy sources.\n<\/span><\/p>\n\n\n\n

\nFurthermore, the definition of a \u201cself-generator\u201d outlined in Article 2 of Law No. 82-21 excludes\nthe ONEE and the Moroccan Agency for Sustainable Energy (MASEN). This exclusion raises\nconcerns about the applicability of the law, especially considering that these entities possess the\ncapability to meet the electricity requirements of their offices and workshops if authorized to be\nself-generators.\n<\/span><\/p>\n\n\n\n

\nMoreover, Article 7 of Law No. 82-21 places restrictions on numerous small-scale renewable\nenergy projects with capacities below 5 MW that inject electricity into the medium-voltage grid,\nhindering their eligibility for self-generation authorization. Primarily targeting large-scale projects,\nArticle 7 impedes the progress of small-scale initiatives. Additionally, Article 12 of the Law No.\n82-21 prohibits the injection of more than 20% of the energy produced, consequently limiting\nthe available power for consumers. This limitation can have adverse effects on consumers if they\nconnect multiple devices, potentially resulting in electrical overload and the tripping of circuit\nbreakers. Therefore, Article 12 does not genuinely foster the accelerated development of\nrenewable energy.\n<\/span><\/p>\n\n\n\n

\nDespite its merits, Law No. 82-21 fails to address collective self-generation, which is applicable\nto buildings, and G + 2 storey buildings, representing a significant portion of households in\nMorocco, i.e., over 90%. This omission contradicts the royal directives aimed at accelerating the\ndevelopment of renewable energy in Morocco. Therefore, to foster a comprehensive and\ninclusive dialogue, it is crucial to review and revise these legislative provisions. By doing so,\nMorocco can ensure that its legal framework aligns with the national objectives of advancing\nrenewable energy and achieving a sustainable energy future.\n<\/span><\/p>\n\n\n\n

\n \n 4. Conclusion<\/span>\n <\/strong>\n<\/p>\n\n\n\n

\nIn conclusion, renewable energy is not merely a new energy source that can be substituted for\nfossil fuels with a few adjustments to techniques and infrastructure. It is not just a technological\nsolution but a process of transitioning towards an alternative energy paradigm. Morocco is\ncontinuously keeping up with the advancements in the sector to accelerate the strengthening of\nits technological development capabilities. The new legal reforms introduced by Laws No. 40-19\nand 82-21 aim to address the legal challenges operators face, enhancing the attractiveness of the\nrenewable energy sector in Morocco and accelerating the emergence of a national ecosystem for\nrenewable energy technologies.\n<\/span><\/p>\n\n\n\n

\nAdditionally, Law No. 82-21 will play a crucial role in streamlining the implementation of\nMorocco\u2019s national green hydrogen offer, a comprehensive initiative that spans the entire value\nchain and ecosystem. Introducing this new regulatory framework guides the development of\nrenewable energy-powered electrolysis, fostering a sustainable and efficient approach.\n<\/span><\/p>\n\n\n\n

\nLastly, it is essential to note that the energy issue is not isolated and should be addressed in\nconjunction with concerns related to water, waste, transportation, real estate, urban planning,\nand biodiversity. Environmental challenges must be tackled collectively to facilitate the\nestablishment of decentralized governance for these issues.\n<\/span><\/p>\n\n\n\n

\n \n Disclaimer<\/span>\n <\/strong>\n<\/p>\n\n\n\n

This document is intended to provide general information to the clients of URITI and other\ninterested individuals. It is not meant to be an exhaustive or comprehensive source of\ninformation nor a legal advice.<\/em> <\/strong><\/span><\/p>\n\n\n\n

About the Author<\/span><\/strong><\/p>\n\n\n\n

\nMs. Kenza Bounjou is the Founding Partner at URITI, Casablanca, Morocco. With over 12 years\nof experience, Kenza specializes in corporate, finance and projects. She advises financial\ninstitutions, private equity funds, energy companies, multinational corporations and public\nentities on high profile transactions in Africa. She is well-versed in the operational challenges\nspecific to the continent and also has a firm grasp of local nuances.\n<\/span><\/p>\n\n\n\n

\nBefore founding URITI in 2022, Kenza headed the Project Finance department of Dentons in\nCasablanca with a particular focus on Francophone Africa. Prior to joining Dentons, she was an\nassociate within Magic Circle (Clifford Chance, Allen & Overy) and White & Case in Paris and\nCasablanca. Kenza was also a legal counsel at Credit Agricole CIB in New York City.\n<\/span><\/p>\n\n\n\n

\nMs. Wiame El Mouadden Lalami is a Junior Associate at URITI, Casablanca, Morocco. Before\njoining URITI, Wiame has worked within law firms and companies specialized in renewable\nenergy and new technologies in Morocco. Wiame holds a Master\u2019s degree in environmental law\nand sustainable development. She is focusing on the development aspects of Energy and\nInfrastructure projects in Africa, including the regulatory aspects related to energy and\nenvironmental laws.\n<\/span><\/p>\n\n\n\n

Editorial Team<\/span><\/strong><\/p>\n\n\n\n

Managing Editor: Naman Anand<\/em>
Editors-in-Chief(Blog): Abeer Tiwari & Muskaan Singh<\/em>
Editor-in-Chief (Journal) and Senior Editor: Hamna Viriyam<\/em>
Associate Editor: Pushpit Singh<\/em>
Junior Editor: Kaushiki Singh<\/em><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

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