Morocco is one of Africa and the world’s leaders in renewable energy. Since 2011, it has included provisions regarding sustainable development in the constitution. It opened Africa’s largest wind farm at Tarfaya in southern Morocco in 2014 and the world’s largest concentrated solar plant in 2016. The country aspires to generate over 40% of its energy demand from renewables as of 2020 and over 50% by 2030. It is therefore a favoured investment partner for international institutions and businesses seeking to partner on clean energy projects.

The World Bank’s International Finance Corporation (IFC) subsidiary announced on 31 July that it had launched a new partnership with the Morocco’s Gaia Energy to create a joint partnership for wind farm development and other renewable energy projects in Africa. It will be implemented under IFC InfraVentures — a US$150 million global infrastructure project development fund for developing countries — as well as the Finland-IFC Blended Finance for Climate Programme, worth US$130 million. Gaia Energy already provides renewable energy development services in ten African countries, but the new partnership is expected to lead to 22 new projects in nine countries in North, West, and East Africa. IFC is expected to provide expertise in financial structuring and environmental and social safeguards to augment Gaia Energy’s existing capabilities.

Morocco has not limited itself to working with international financial institutions and other multilateral institutions to use the expertise it has gained as a renewable energy giant to support other African states. This brand has also attracted private enterprises interested in new ways of coping with their own energy consumption dilemmas. Bitcoin mining is extremely energy-intensive and globally accounts for about 10% of China’s annual energy usage. Many companies interested in mining Bitcoins have therefore started to look to Morocco as they expand, and especially as electricity has become more expensive. The block chain company Soluna — which is part of the Brookstone Partners private equity company — expressed interest in building a 900 MW wind farm to power a computing centre for these mining activities in Morocco in early August.

Initial work on the wind farm is expected to take place in 2019, and could cost between US$1.4-US$2.5 billion. This project is more controversial than some of Morocco’s other business partnerships in the renewable energy field. Soluna will not be allowed to make cryptocurrency transactions in Morocco because they are not permitted. In addition, the new wind farm is expected to be built in Dakhla which is in the Moroccan-administered section of the internationally disputed Western Sahara and one of the windiest places on Earth.

This article is taken from our new Morocco country risk analysis. To receive a free sample contact our consultancy team here.