Energy Policies Beyond IEA Countries - Morocco 2014

Executive Summary and Key Recommendations

Executive Summary

• Country Overview: Morocco is highly dependent on imported energy supplies, particularly oil, coal, and natural gas.
• Supply and Demand: The country faces significant challenges in ensuring energy security and affordability due to high import bills and subsidies for some energy products.
• Institutions: The government has taken steps to diversify the energy mix, particularly in electricity, and has liberalized the oil sector.
• Energy Strategy Challenges and Opportunities: Under political direction from the highest levels, Morocco has made strides in addressing these challenges through various initiatives.

Key Recommendations

1. Energy Efficiency: More effort could be put into improving energy efficiency, including on the research and development (R&D) side.
2. Renewable Energy: Additional attention should be given to the rapidly changing world of renewable energy, particularly photovoltaics and concentrating solar power.
3. Research and Development: Additional commitment of funds and human resources would be beneficial for advancing renewable energy technologies.
4. Coordination: Strengthening the coordination and focus of R&D efforts in renewables could enable Moroccan institutions to play a leading role in the region.

Policy Analysis

General Energy Policy

Country Overview

• Energy Mix: Morocco relies heavily on imported energy sources, including oil, coal, and natural gas.
• Subsidies: Some energy products, such as bottled gas, are subsidized, which can strain the national budget.
• Hydroelectric Power: Despite a long history of careful use, hydroelectricity still contributes significantly to the energy mix.

Supply and Demand

• Energy Security: High reliance on imported energy makes the country vulnerable to fluctuations in international prices.
• Affordability: Subsidies for certain energy products help maintain affordability but can be costly.
• Electricity Sector: Efforts have been made to diversify the energy mix, especially in electricity, and to open the power sector to foreign investment.

Institutions

• Government Initiatives: The government has taken steps to liberalize the oil sector and reduce subsidies for transport fuels.
• Energy Efficiency: Energy efficiency has been elevated to a national priority.
• Cooperation: Collaboration with UN agencies on the climate change agenda is widely seen as exemplary.

Energy Strategy Challenges and Opportunities

• Diversification: The government has moved to address energy challenges through diversification, particularly in the electricity sector.
• Liberalization: The oil sector has been liberalized, and recent measures have been taken to reduce fuel subsidies.
• Climate Change: Morocco has set ambitious targets for renewable energy, particularly wind and solar power.
• Geographical Advantages: Favorable geography for wind and solar power generation has been leveraged.

Climate Change

Overview

• Carbon Emissions: Energy-related carbon dioxide (CO2) emissions are a significant concern.
• Environmental Impact: The energy sector plays a crucial role in environmental sustainability.

Environment and Sustainable Development

• Energy Sector: The energy sector is a major contributor to greenhouse gas emissions, necessitating urgent action.
• Renewable Targets: Morocco has set ambitious targets for renewable energy, reflecting its commitment to sustainability.

This summary highlights the key aspects of Morocco's energy policies and the recommendations for further improvement.