The European Bank for Reconstruction and Development (EBRD) has approved a €300 million loan for the electricity division of Morocco’s National Office of Electricity and Drinking Water (ONEE).
This financing aims to strengthen the financial stability of ONEE, accelerate its energy transition, and diversify its funding sources.
An Energy Sector Under Pressure
Since the Covid-19 crisis, electricity demand in Morocco has significantly increased, particularly with the resurgence of industrial activity. At the same time, declining rainfall has impacted hydroelectric production, forcing the country to rely on more expensive energy sources, further straining ONEE’s financial situation.
Additionally, the rise in global fossil fuel prices has increased costs for the energy sector, prompting ONEE to seek solutions to enhance its financial resilience and ensure a stable electricity supply.
A Sustainability-Driven and Decarbonization-Oriented Loan
The EBRD’s loan is structured as a sustainability-linked loan, meaning ONEE must meet specific environmental targets. The primary objectives include reducing CO₂ emissions and increasing the share of renewable energy in Morocco’s energy mix.
Unlike traditional financing, this loan excludes investments in fossil fuel-related projects. Instead, the funds will be used exclusively to improve energy efficiency, develop sustainable electrical infrastructure, and strengthen ONEE’s ability to tackle climate and economic challenges.
Technical Support for Energy Transition
Beyond financial aid, the EBRD will provide technical assistance to help ONEE accelerate its energy transition. This support will focus on:
- Implementing Law 48-15, which regulates Morocco’s electricity market.
- Developing a digital roadmap to modernize the electricity sector.
- Enhancing climate governance in collaboration with Morocco’s Ministry of Energy Transition.
Moreover, the EBRD will help establish a long-term decarbonization strategy for ONEE, assisting in the gradual phasing out of fossil fuel assets. This initiative aligns with Morocco’s goal of reducing its dependence on polluting energy sources while improving the resilience of its energy sector in the face of global climate challenges.
This partnership between the EBRD, ONEE, and Morocco’s Ministry of Energy Transition marks a significant step in the country’s efforts to decarbonize its energy sector, improve electricity market governance, and drive sustainable digital transformation.
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