Morocco’s National Office of Electricity and Drinking Water (ONEE) has secured €300 million in financing from the European Investment Bank (EIB) and the German development bank KfW to strengthen its electricity transmission infrastructure and support the country’s energy transition.

The funding, which includes €170 million from the EIB and €130 million from KfW, will be used to upgrade and extend the national grid by 731 km and increasing its evacuation capacity by 1,850 MVA, according to a French language press statement by EIB.

The loan is backed by the European Union's guarantee mechanism.

The investment is part of ONEE’s broader 220 billion Moroccan dirhams ($21.7 billion) roadmap through 2030, with MAD 177 billion dedicated to the power sector.

The financing complements earlier investments such as the 270 MW Jebel Lahdid wind farm, co-financed by the EIB, KfW, and the European Union. Commissioned in October 2024, the wind farm is the fourth project in Morocco's 1,000 MW Integrated Wind Energy Programme.

ONEE has an installed capacity of 12,017 megawatts (MW), 45.4 percent of which comes from renewable energy, and is developing 12.5 gigawatts (GW) of additional capacity by 2030. Its transmission network extends for more than 30,000 km with a 3 GW electricity interconnection extending for 1,400 km between the South and the Centre of the country being planned.  

Morocco is aiming for 56 percent of installed capacity from renewables by end-2027.

(Writing by Majda Muhsen; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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