Morocco to build $420M, 990MW gas power plant in the North

Morocco’s state-run water and electricity utility, ONEE, is set to construct a 990-megawatt gas-fired power plant at an estimated cost of $420 million, according to documents released by the country’s financial market regulator, AMMC.

The project will be financed through a mix of equity and loans. ONEE will cover 20% of the costs, while Morocco’s largest banks, Attijariwafa Bank and Bank of Africa, will provide loans alongside two securitization funds, FT Nord Energy and FT Flexenergy, which will contribute the remaining 80%.

Located in northern Morocco on the Alwahda site, the plant will feature two open-cycle gas turbines (OCGT) and include diesel as a backup fuel option. The site’s proximity to a pipeline used since 2023 to import natural gas from Spanish terminals was a strategic factor in its selection.

The project aligns with Morocco’s strategy to diversify its energy sources, which includes expanding natural gas use while accelerating renewable energy development. The country aims to increase the share of renewables in its energy mix to 52% by 2030, up from 45% in 2024.

Plans are also underway for a natural gas terminal in the northeastern port of Nador West Med, which will connect to the same pipeline serving the Alwahda plant.

As of 2024, Morocco’s total installed energy production capacity stood at 11,918 MW, with coal remaining the dominant source.

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