Moroccan Law on Renewable Energy Incentives

Morocco has positioned itself as a regional and global leader in the transition toward sustainable power. Faced with a historical reliance on imported fossil fuels and the volatility of international energy prices, the Kingdom has developed a robust legal framework designed to promote energy efficiency and the massive deployment of renewable resources.

The legal landscape is primarily governed by a series of laws and decrees aimed at liberalising the energy market, encouraging private investment, and establishing specialised institutions to oversee the transition. For businesses and investors, understanding these regulations is essential to navigating the opportunities in solar, wind, and other green energy sectors.

The Strategic Framework: Law No. 13.09

At the heart of Morocco’s green revolution is Law No. 13.09 relating to Renewable Energies. This legislation serves as the cornerstone for the development of national resources, focusing on four primary objectives:

1. Security of Supply: Diversifying energy sources to reduce external dependence.
2. Universal Access: Providing modern energy to all segments of the population at competitive prices.
3. Environmental Protection: Utilising clean technologies to reduce greenhouse gas emissions and protect natural resources.
4. Regional Integration: Aligning Moroccan energy markets with the Euro-Mediterranean energy space.

Under Article 2 of Law No. 13.09, private legal entities are explicitly permitted to produce electricity from renewable sources. This opened the door for private developers to engage in large-scale projects, particularly in the wind and solar sectors, provided they comply with the national grid requirements managed by the National Office of Electricity and Drinking Water (ONEE).

Institutional Governance: MASEN and Energy Efficiency

To ensure the success of its ambitious targets—aiming for over 52% of installed capacity from renewables by 2030—Morocco established specialized institutions through dedicated legislation.

The Moroccan Agency for Sustainable Energy (MASEN)

Originally focused on solar power under Law No. 57.09, the agency’s mandate was expanded to cover all renewable energies. MASEN is a limited liability company (Société Anonyme) with majority state ownership. According to Article 1 of Law No. 57.09, MASEN is responsible for implementing integrated development programs, with a target of reaching 6,000 Megawatts of additional capacity by 2030. Its role includes evaluating renewable resources and developing facilities in eligible areas across the national territory.

Energy Efficiency and Mandatory Audits

While production is vital, the Moroccan legislator also prioritizes "Energy Efficiency" (النجاعة الطاقية). The law aims to rationalize consumption and avoid waste across all economic sectors. A critical practical application of this is the Mandatory Energy Audit.

According to relevant decrees, industrial enterprises and entities in the service or transport sectors that exceed specific energy consumption thresholds (measured in Tonnes of Oil Equivalent or TOE) must undergo regular energy audits. This legal requirement encourages companies to adopt "Green Energy" solutions to lower their consumption profiles and operational costs.

Licensing and Private Production Thresholds

For investors looking to enter the Moroccan market, the licensing regime is a critical procedural step. Under Article 3 of Law No. 13.09, the construction, operation, or expansion of any renewable energy production facility with a capacity equal to or exceeding 2 Megawatts (MW) is subject to a formal authorization (licensing) procedure.

Furthermore, the legal framework provides incentives through the public procurement system. Under Decree No. 2.22.431 regarding public procurement, technical evaluations for government contracts now take into account energy efficiency and environmental conservation. This means that companies employing sustainable energy practices may receive a higher "technical score" during the bidding process, giving them a competitive advantage in securing state contracts.

Practical Applications for Businesses

The Moroccan legal framework offers several pathways for private engagement:

• Self-Generation: Companies can produce their own electricity from solar or wind sources to meet their internal needs, thereby reducing their carbon footprint and protecting themselves against fluctuating electricity tariffs.
• Direct Sale: Producers can sell electricity produced from renewable sources to specific end-users or through the national grid under specific technical and commercial conditions defined by the law.
• Industrial Integration: The law encourages the use of local Moroccan craftsmanship and industrial products in the construction of energy projects, fostering a "Green Economy" that benefits local supply chains.

Conclusion

Morocco’s legal approach to renewable energy is both ambitious and highly structured. By moving from a state-monopoly model (historically managed by ONEE) to a more open, regulated market under Law No. 13.09 and the leadership of MASEN, the Kingdom has created a predictable environment for investment. For businesses, the combination of mandatory efficiency audits and the ability to produce green energy provides a clear roadmap toward sustainability and economic competitiveness.

Key takeaways for stakeholders include:

• Private entities have a legal right to produce renewable energy.
• Projects over 2 MW require specific administrative authorization.
• MASEN is the central authority for large-scale integrated renewable projects.
• Energy efficiency is no longer optional for large consumers; it is a legal mandate supported by audit requirements.

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