More companies are turning to Morocco to expand on their renewable energy interests in Africa, and big schemes like Desertec picked the North African country first in its regional tour; however, large funding agencies like the World Bank and African Development Bank (AfDB) seem keener on helping facilitate financial backing for projects set to take place within the country.
So what is the reasoning? AfDB’s Richard Claudet said during a MENA CSP workshop: "If a project is eligible for concessional finance, be it grants or loans, it indicates political support. That brings everyone on board and makes everyone more confident that the project will advance." The Moroccan government has made several reforms to grow its wind and solar sectors, and investors as well as aid agencies have all taken notice.
The country will soon begin construction of the Tarfaya wind power project with Morocco’s state utility Office National d’Electricite (ONE) recently signing a $350 million, 20-year PPA. Without the support of organizations like the AfDB, ONE would be very limited in its financial capacity to launch such ambitious projects.
Another project underway includes a three-company consortium that will design, develop, install, and optimize a 1-MW thermal solar driven Organic Rankine Cycle (ORC) energy project. The International Renewable Energy Agency (IRENA) has even proposed the country be an African model for renewable energy.
Incentives to go into Morocco’s energy sector are based upon support from the government which also helps mitigate risk. Extensive experience with IPPs is another factor, one in which some African countries like South Africa have a very difficult time executing.
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