ONEE Secures €300 Million from European Partners for Grid Expansion

Morocco World

23-05-2025

Doha – Morocco's National Office of Electricity and Drinking Water (ONEE) announced a new €300 million financing package on Thursday. The funding comes from the European Investment Bank (EIB), German Development Bank (KfW), and European Union (EU).
The announcement came during a high-level visit to the 270 MW Jbel Lahdid wind farm in Essaouira province. The site visit was led by EIB Vice President Ioannis Tsakiris, KfW board member Christiane Laibach, and EU Delegation Deputy Head Daniele Dotto.
The financing aims to improve renewable energy integration by strengthening Morocco's electrical grid. The EIB will provide €170 million, while KfW will contribute €130 million on behalf of the German government.
The funds will support ONEE's investments to modernize and expand the national electricity transmission network across 731 kilometers. This expansion will increase the grid's transmission capacity by 1,850 Mega Volt Amperes.
These investments will enhance supply security, reduce greenhouse gas emissions by 390,000 tons of CO2 equivalent annually by 2030, and stimulate growth in multiple regions. The project will also strengthen the national grid's resilience against increasing demand and climate challenges.
The financing is part of ONEE's ambitious plan totaling MAD 220 billion ($22 billion) by 2030. Of this, MAD 177 billion ($17.7 billion) are allocated to the electricity sector, aiming to increase installed renewable energy capacity to 56% by the end of 2027.
Key projects include developing 12.5 GW of additional renewable capacity, strengthening the transmission network over 700 kilometers, and implementing a 3,000 MW electrical highway spanning 1,400 kilometers between southern and central Morocco.
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The Jbel Lahdid wind farm, operational since October 2024, is the fourth project in ONEE's 1,000 MW Integrated Wind Energy Program. It was co-financed by €200 million loans each from EIB and KfW, plus a €15 million EU grant.
With its 270 MW capacity, the wind farm will produce approximately 952 GWh of renewable electricity annually, equivalent to the consumption of 1.2 million people.
EIB Vice President Tsakiris explained that 'the Jbel Lahdid park illustrates the solid partnership between Morocco and European institutions in energy transition.'
'With this new €170 million support, we are backing the national electricity grid extension, an essential lever for strengthening the link between green energy production and electricity transport infrastructure,' he added.
EU Ambassador Patricia Llombart Cussac noted that 'this program is a new demonstration of the concrete achievements of our Morocco-EU Green Partnership and Team Europe's continued commitment to financing these key infrastructures for Morocco's energy transition.'
German Ambassador Robert Dölger pointed out that Germany and Morocco have built a solid partnership in the energy sector. 'With this co-financing agreement, we are taking another major step toward achieving our ambitious climate goals,' he said. Germany has now contributed over €3 billion to Morocco's energy transition and climate resilience.
KfW board member Christiane Laibach remarked that the €130 million Renewable Energy Integration Program is an important step in their ongoing commitment to Morocco's energy transition. The program supports creating a digital and robust electrical grid for a future where most electricity will come from renewable sources.
ONEE Director General Tarik Hamane said that 'under the enlightened leadership of His Majesty King Mohammed VI, the Kingdom of Morocco resolutely continues its energy transition toward a sustainable and inclusive model.'
ONEE currently has an installed capacity of 12 GW, with over 45% from renewable energy, and a transmission network exceeding 30,000 kilometers.
The EU and Morocco concluded a historic 'Green Partnership' in October 2022 to promote the transition to more sustainable production and consumption methods.
During COP28 in December 2023, the EU and Morocco launched the 'Green Energy' program to strengthen Morocco's climate action and energy transition. Tags: ONEErenewable energythe National Electricity Office (ONEE)