Energy & Environment
From The Report: Morocco 2014
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As a net importer of energy, Morocco is faced with the challenging proposition of satisfying rising local demand while keeping its import bill in check. As a result, energy independence is at the top of the government’s agenda, bundled with efforts to improve domestic energy infrastructure, such as refinery capacities, storage and power generation, and more efficient use of cleaner energy sources. With consumption figures and global commodity prices rising, the government’s balance sheet has been under increasing pressure. According to the Minister of Energy, Mines Water and Environment, total expenditure on energy imports – dominated by crude and refined oil products – rose from 7% of GDP in 2009 to 10.7% in 2011, when it equalled Dh85bn (€7.55bn). Bold energy policies have attracted significant investor interest in recent years, and as a result, an increasing number of players are addressing opportunities in the upstream segment. Morocco is also looking south, where promising growth in the West African market is generating interest among policymakers’ in developing grid connections. Significant challenges remain, however, in terms of funding government-owned entities and so far largely unsuccessful hydrocarbons exploration. This chapter contains interviews with Amina Benkhadra, Managing Director, National Hydrocarbons and Mining Office (ONHYM), and Ali Fassi Fihri, Managing Director, Office National de l’Electricité et de l’Eau Potable (ONEE)

Articles from this Chapter

Overview

New horizons: As demand grows the country is looking to supplement its energy mix with new sources
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As a net importer of energy, Morocco is faced with the challenging proposition of satisfying rising local demand while keeping its import bill in check. This has proven problematic as consumption figures and global commodity prices have risen, putting particular pressure on the government’s balance sheet, which has for the better part of two decades help fund generous fuel subsidies to minimise inflationary pressures on residents. According to the Ministry of Energy, Mines Water and Environment (Ministére de l’Energie, des Mines, de l’Eau et de l’Environnement, MEM), total expenditure on energy imports – dominated by crude and refined…

Interview

OBG talks to Amina Benkhadra, Managing Director, National Hydrocarbons and Mining Office (ONHYM)
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Interview:Amina Benkhadra What progress has been made in terms of shale gas and shale oil exploitation in Morocco? AMINA BENKHADRA: The country’s shale oil reserves – estimated at 50bn barrels – are the sixth-largest in the world. The development of shale oil has attracted growing interest internationally since 2004, when the prices of oil products started to rise rapidly. That is why ONHYM has implemented a strategy to revitalise development of these resources, based on partnerships…

Analysis

Powering up: With the local climate providing an edge over competitors, the country is set to expand renewables
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Since the announcement of the 2020 Energy Strategy five years ago, followed by the introduction of the 2010 Renewable Energy Law, Morocco has seen a significant increase in interest in clean energy, with the biggest developments in solar and wind, both of which are planned to contribute 14% each (or 2000 MW) to the country’s installed capacity by the end of 2020. Anas Kabbaj, development manager for Morocco and Mauritania at GE Global Growth and Operations, told OBG, “Renewable energy is an excellent driver for growth as it reduces the burden on the environment and energy imports related to hydrocarbon products.” THE RIGHT CONDITIONS:…

Analysis

Testing the waters: Offshore fields offer new possibilities and solutions to rising imports
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Although exploration activity in Morocco’s offshore basin has thus far not produced commercial discoveries, a number of oil players have increased their presence in recent times. According to the country’s national oil company, the Office National des Hydrocarbures et des Mines (ONHYM), a total of 27 wells are planned for 2014, of which at least 10 are in the offshore Atlantic basin. This is good news for a region that remains one of the world’s most unexplored at 1.6 wells per 10,000 sq km, compared to a world average of 51. In contrast, during the decade preceding 2013, only five offshore wells were drilled. NEW ENTRANTS: A spate…

Interview

OBG talks to Ali Fassi Fihri, Managing Director, Office National de l’Electricité et de l’Eau Potable (ONEE)
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Interview:Ali Fassi Fihri How will Morocco’s energy mix change to meet growing demand in the medium to long term? ALI FASSI FIHRI: One of Morocco’s main challenges is how to meet increasing demand for electricity, which has grown at an average annual rate of 6.7% over the past decade. This trend results directly from the country’s socioeconomic dynamism, increased access to basic services and infrastructure, and the improved standards of living fostered under the National Initiative…