[REPORT] The Potential of Distributed Renewable Energy Systems in Morocco

The full report, in French, may be downloaded below and accessed here:

Rapport Imal Potentiel photovoltaique au MAROC_Version 30.10.pdf

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Morocco stands at a pivotal moment in its energy transition. Population growth, rising living standards, and industrial development are inevitably driving a substantial increase in energy demand. Meeting this challenge requires accelerating the integration of renewable energies in order to reduce dependence on imported fossil fuels, which are costly and emit greenhouse gases, and to fulfill national commitments to triple installed renewable capacity by 2030, as set out in the 2025–2030 Infrastructure Plan of the National Office of Electricity and Drinking Water (ONEE).

In this context, decentralized renewable energy systems (DRES) represent a promising solution. Morocco’s New Development Model (2021–2035), in its strategic orientations relating to the energy sector, clearly states that:

“Decentralized generation... will strengthen the reliability, resilience, balance, and competitiveness of the energy system by supporting new forms of generation through technologies that optimize performance, minimize losses, and build on existing infrastructure.”

Moroccan citizens, through both existing and future buildings, can make a substantial contribution to the energy transition in Morocco. Thanks to the combination of solar photovoltaics, energy storage, electric vehicles, and digital technologies, which are rapidly evolving, citizens can move from mere consumers of energy into “prosumers” (producer-consumers), capable of producing, storing, consuming, selling, and distributing electricity, while providing valuable flexibility to the national grid.

The Significant Potential of Decentralized Renewable Energy Systems in Morocco

The first of its kind in Morocco, this report provides an in-depth analysis of the potential for integrating decentralized renewable energy systems, focusing on rooftops as a basis for scaling green electricity production. The study draws on official data from the High Commission for Planning (HCP) and uses estimation models to assess: (i) the available rooftop area for photovoltaic solar installations by region; (ii) the corresponding potential electricity production; (iii) the average cost of installing such capacity; (iv) the integration of complementary technologies (batteries, electric vehicles, bidirectional chargers, connected devices) and their additional potential; and (v) the amount of CO₂ emissions avoided.

According to the scenarios modeled in this report, Morocco’s potential in DRES by 2035 is significant:

• Optimistic scenario: up to 66.8 TWh of electricity generated, with an installed capacity of 28.58 GW, representing an economic market of USD 31.08 billion and avoiding 48.19 million tonnes of CO₂.

• Median scenario: around 40.1 TWh produced, 17.15 GW installed, an USD 18.65 billion market, and 28.91 million tonnes of CO₂ avoided.

• Pessimistic scenario: 20.05 TWh generated, 8.57 GW installed, USD 9.3 billion in market potential, and 14.46 million tonnes of CO₂ avoided.

In addition to the above, these scenarios also represent significant potential for job creation at both the national and regional levels, as specified in greater detail below.

The Potential for Synergies in Rooftop Solar and Smart Electric Mobility

By 2035, Morocco is expected to have approximately 2.5 million electric vehicles (EVs) in circulation, in line with the projections of the National Low-Carbon Strategy 2050.  Based on this, the widespread adoption of smart, bidirectional electric mobility, integrated with decentralized rooftop solar power, could profoundly transform the Moroccan electricity system. Indeed, a fleet of 2.5 million bidirectional electric vehicles would provide the country with a large mobile energy storage asset capable of meeting a significant portion of the needs of the national grid and buildings, while simultaneously strengthening energy sovereignty and territorial resilience.

• A fleet of 2.5 million bidirectional EVs would provide a mobile energy storage capacity of approximately 39,420 GWh, equivalent to 91% of the country’s projected electricity demand for 2035 (43,145 GWh).

• This stored energy could support the national grid through bidirectional charging technologies and Vehicle-to-Grid (V2G) systems.

• Rooftop solar, as evaluated in this report, could cover 59% to 98% of the charging demand for these vehicles in the optimistic and median scenarios.

The Socioeconomic Benefits of Developing Decentralized Renewable Energy Systems (DRES) in Morocco

Preliminary estimates suggest that opening and developing the decentralized renewable energy systems (DRES) market in Morocco could create tens of thousands of jobs in project development and installation alone.

Over a ten-year period to 2035, the deployment of 8.57 GW would create and sustain approximately 13,000 jobs; the deployment of 17.15 GW approximately 26,000 jobs; and the deployment of 28.58 GW approximately 43,000 jobs. These are conservative estimates based on the global average of 15 Full-Time Equivalent jobs per MW deployed, calculated by the International Energy Agency (IEA)—a coefficient lower than what is generally associated with deployment in African countries and small rooftop systems. (For comparison, in Italy, the rooftop solar sector supported over 65,000 direct and indirect jobs in 2024, representing about 65% of total employment in the Italian solar photovoltaics sector, according to the EU Solar Jobs Report 2025.)

Initial Steps in the Development of Morocco’s DRES Market

Between 2011 and the end of 2023, Moroccan households and businesses invested at least 3.36 billion dirhams to install around 336 MWp of decentralized solar capacity, demonstrating a real momentum toward self-generation. However, the absence of a national register of solar installations limits full assessment of their economic and energy impacts. A mapping exercise by the Imal Initiative for Climate and Development shows that a genuine decentralized production revolution is underway—calling for tailored policies and closer monitoring.

The Moroccan DRES market is rapidly expanding, supported by a diverse ecosystem of players—from large corporations to local startups—offering solar, storage, and energy efficiency solutions. Various ESCOs (Energy Service Companies) already provide these services, but these largely still operate without official government confirmation of ESCO status, which limits their access to financing and formal sector development.

Recommendations for Unlocking the Potential of Decentralized Renewable Energy Systems in Morocco

These findings suggest a major opportunity to rethink the operating paradigm and economic model of the electricity sector—from production to consumption. This should lead to strategic reorientations of investments, as well as of multi-year planning, across generation, transmission, and distribution, to fully integrate the growing potential of decentralized self-produced electricity in line with the strategic orientation of the New Development Model. The government, through the Ministry of Energy Transition and Sustainable Development (MTEDD) and other ministries overseeing ONEE and the Regional Multi-Service Companies (SRM), must ensure that planning efforts do not hinder the deployment of decentralized renewable energy systems (DRES), but rather facilitate and integrate these as part of national strategies.

In this sense, Morocco should therefore adopt institutional, regulatory, and incentive frameworks that sustainably encourage DRES deployment across households, businesses, schools, farms, and indeed all public and private buildings. Drawing inspiration from international best practices, this report presents a set of recommendations with a view to supporting public and private decisionmakers in the implementation of context-adapted policies, notably including :

1. Investing in smart grids to enhance the flexibility, reliability, and security of the electricity system.

2. Promoting energy efficiency and smart demand management through dynamic pricing and aggregation frameworks for small-scale generation.

3. Operationalizing Law 82-21 on self-generation by 2026: implementing decrees, bidirectional metering, and financial compensation mechanisms.

4. Adopting new building codes that integrate green technologies for new constructions.

5. Creating a national fund for the integration of Decentralized Renewable Energy Systems (DRES) to support investment by households and SMEs.

6. Scaling electric mobility and improving the "V2X Morocco" ("Vehicle-to-everything") ecosystem to capture the flexibility opportunity presented by electric vehicles.

7. Strengthening governance and planning through improved institutional coordination, technical standardization, and joint advocacy for DRES.

On this basis, decentralized electricity generation can become a genuine pillar of the national energy transition through a national energy solidarity approach, building on the potential of each of Morocco's twelve regions, allowing surpluses from some regions to compensate for deficits in others. To unlock the full potential of decentralized renewable energy systems (DRES), it will be necessary to strengthen grids, storage, and dynamic pricing, while consolidating the regulatory framework and formally recognizing the qualitative and quantitative benefits of this agenda. When placed on an equal footing with centralized renewable energy generation investments, DRES can contribute maximally to realizing the vision of the New Development Model (2021-2035), based on decentralized, competitive, and equitable energy systems, in the service of the Kingdom's energy sovereignty and the inclusive development of its twelve regions.