Benali responds to report criticizing gas development, defends investment and energy strategy

Energy Transition Minister Leila Benali responded to the findings of the 2023-2024 Court of Auditors report, which criticized Morocco’s natural gas development projects. Benali rejected the report’s conclusions, saying these initiatives had led to significant investments in energy storage and infrastructure.

The minister said the projects focused on increasing natural gas usage, expanding pumped hydroelectric stations, and developing pipelines, with total investments reaching 43 billion dirhams.

While the report questioned the impact of these projects, Benali argued they had successfully attracted investors to a sector that had previously seen declining interest. She added that her ministry had devised a comprehensive roadmap for the gas sector, aimed at meeting industrial demands and creating thousands of jobs.

During a session at the House of Advisors, Benali addressed rising energy production costs, particularly for electricity, and assured that these costs had not been passed on to consumers. The state absorbed the increase, especially in 2022 and 2023, and reforms and competitive investments helped reduce electricity prices.

Benali also reported progress in renewable energy, with production costs for renewables, including batteries, dropping to below 40 cents per kilowatt-hour. She mentioned a 2022-2023 initiative that resulted in energy savings of 800 gigawatt-hours.

The minister stated that renewable energy capacity had reached 5,300 megawatts by August, a 7.3% increase during the current government term. Wind energy had overtaken hydropower, and renewable projects now accounted for 20% of national demand.

On energy wastage, Benali acknowledged the issue but explained that 7-10% wastage is common globally, particularly in long-distance transmission. She also noted that non-technical wastage required further attention and the introduction of incentives to improve energy efficiency.