Moroccan Power Sector & RenewablesAchievements, Challenges and Opportunities of

Investment

IPPGeneration

Capacity: 2 812 MW

Generation: 18 404 GWh(53,5%)

ONEEGeneration

Capacity : 4 942 MWGeneration: 10 010 GWh

(29,1%)

Interconnections

Importations4 919 GWh

(14,3%)

Law 13-09Private Generation

Capacity : 203 MWGeneration: 791 GWh

(2,3%)

Auto Generation

Capacity : 37 MW

(< 1%)

ONEE-BE Single Buyer (except Law 13-09) Transmission System Operator

Total Demand 35,4 TWh

ONEE-BE (Direct Seller)

(58%)

Distribution MV/LV (43%)

Public and private utilities

(42%)

Direct Customers VHV/HV (15%)

MV/LV Customers (45%)

ELECTRICITY SECTOR ORGANIZATION

BALANCE OF SUPPLY-DEMAND 2016

2

Coal49,0%

Heavy Fuell

6,0%

Natural Gas

16,6%

Hydro6,6%

Wind6,8%

Importations14,8%

Others

0,2%

Solar0,0%

DIVERSIFIED POWER GENERATION

Total Installed Capacity in 2016 MW %

Classical Hydro 1 306 17%

STEP 464 6%

Total Hydro 1 770 22%

Wind Farmes ONEE 205 3%

Wind Farmes Privates (13-09 & Auto) 341 4%

IPP Wind Farmes CED + Tarfaya 352 4%

CCGT Ain Beni Mathar (Solar Part) 20 0,2%

Ouarzazate Solar Power plant 160 2%

Total Wind & Solar 1078 13%

Total Thermal 5 411 65%

Total Installed Capacity 8260 100%

Energy consumption 35 400 GWh

Total Installed Capacity8 260 MW

3

A DEVELOPED AND RELIABLE TRANSMISSION GRID

▪ A developed Grid covering the Kingdom and

connected to neighbours grids (Spain and

Algeria):

Transmission Network (400 kV, 225 kV, 60 kV) total length ≈ 29 000 km

Transformation installed capacity ≈ 26 GVA

A 400 KV corridor from Laayoune to Dakhla

(540 Km) under development

▪ 2017-2020 Transmission Grid expansion:

Additional 7 000 Km of HV and VHV transmission lines

9 000 MVA of new transformation capacity

Investments of 1,3 Billion US$

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Achieved

Dakhla

LâayouneAlgeria

Portugal

Morocco

Mauritania

Spain

Boujdour

MOROCCO : A POWER REGIONAL CROSSROADS

Morocco has become a regional crossroads for power exchange between north and south

In Progress

Under study

Commissioning in 1988 (2x 225kV lines)

400 kV line in 2008

Exchange capacity 1500 MW

Morocco-Algeria interconnection

Mise en service en 1997

Doublement en 2006

Capacité d’Echange: 1400 MW

Capacité importée: 750 MW

ONE: 4ème operateur sur le marché Espagnol depuis 1999

Commissioning in 1997

Capacity doubled in 2006

Exchange capacity: 1400 MW

Commercial capacity 900 MW

ONEE has been the 4th operator in the Spanish market since 1999

Studies of 3rd interconnection is in progress

Morocco-Spain interconnection

Expected Morocco-Mauritania interconnection :• Under study• As a first step, Laâyoune-Dakhla in

Progress (400 kV)

Expected Morocco-Portugal interconnection :• Under study

5

A SUCCESSFUL RURAL ELECTRIFICATION PROGRAM

A huge effort in terms of generalization of access to electricity

- Electrification rate: >99%

- >38600 villages (3800 villages

photovoltaïques Kits)

- More than 12 millions citizens

- Investing more than ≈ 3 billion USD

- Creating of 100,000 jobs

A successful experience being shared with African neighbors (Two “electrification, distribution and operation” concessions have already been successfully

implemented by ONEE in Senegal)

✓ Improvement of living conditions, particularly for female gender;

✓ Better sanitation and safety conditions in rural area;

✓ Improvement of education;

✓Development of local companies specialized in electrical fields and flourishing of smallbusinesses;

✓Mitigation of rural exodus.

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7

Average increase in demand of about 6%, resulting from sustained economic and social growth:o Widespread access to electricity (in rural and urban areas) “PERG”,o Development of major infrastructures projects,o Urbanization, Economical development and Improved standard of living of the population.

Average Growth Rate: 5%

POWER DEMAND GROWTH OVER THE LAST DECADE

Average Growth Rate: 6%

Demand growth(GWh)

Growth of the Annual Electricity Consumptionper inhabitant (kWh/cap)

8

The load curve shifted from a single peak to a twice one and from winter’s pic to summer’s one ;

The gap between the peak load and the day load became relatively smaller ;

Due particularly to :

▪economic and industrial development across the Kingdom of Morocco ;

▪and modernization of life style (air conditioning, etc.).

Emergence of a significant off-peak load(in terms of level and duration) requiring appropriate measures for its

satisfaction

Load curve Electricity daily evolution “Mutation 2006-2016”

MOROCCAN POWER DEMAND STRUCTURE

9

MOROCCAN RENEWABLE ENERGY STRATEGY

GOAL: RE 42% OF TOTAL INSTALLED CAPACITY IN 2020

Morocco's Energy Strategy prioritize the diversification of the country’s energy sources with particular emphasis on the renewable energies.

Evolution of renewables share in the energy mix Launching of important projects

Appropriate institutional and legislative framework

–The Moroccan Integrated Wind Energy Program 2 000MW by 2020

–The Moroccan Integred solar Energy Project2 000 MW by 2020

–The Moroccan Hydro Energy Program2 000 MW by 2020

–Law n° 13-09 allowing the private sector to developrenewables energy projects, …

–Fund Energy Development (7,3 billion dirhams)

–Law n° 16-08, raised the ceiling for self-generation from10 MW to 50 MW and above 300 MW with access to thegrid

–Creating special instances :

MASEN, ADEREE, …

Strong support in setting-up renewable energy development

At the end of 2020 : 42% of the electricity capacityinstalled will be based on Renewable Energies

INTEGRATED WIND ENERGY PROGRAM

AN INNOVATIVE & STRUCTURING WIND POWER PROGRAM

• 2000 MWInstalled

capacity by 2020

• ≈ 6600 Gwh per year Generation

• ≈3,8 Billion USDEstimated investment

cost

• 1,5 million of TOE per year (750 million USD per year)

Fuel annual save

• 5,6 millions Tons per year

CO2 emissionavoided

▪ ONEE as a lead in the implementation of the wind Program

▪ Private producers under the RE Law « 13-09 »

920 MW under operation

470 MW under construction

or Financial Closing

PEI 850 MW under Financial

Closing

10

140

301

5

201

220

300

900

200

100

0

500

1000

1500

2000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

MW

147

INTEGRATED WIND ENERGY PROGRAM

AN INNOVATIVE & STRUCTURING WIND POWER PROGRAM

Total Wind Capacity built until now : 920 MW

Investment : 2 billion US$

Total New Wind Capacity to build by 2020: 1700 MW

Investment : 2,5 billion of US$

Boujdour

Jbel LahdidTiskrad, Tanger II

KoudiaAftissatOualidia

Taza et Midelt

Khelladi

Tarfaya

Haouma+

Akhfennir I

+Laâyoune

Abdelkhalek

Torres+

Amougdoul+

Tanger I

470 MW under construction or Financial Closing

PEI 850 MW (under Financial Closing) The lowest Tarif in the World 3c$/kWh

Akhfennir II

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SOLAR POWER GENERATION PROJECTS (MASEN)

• 2000 MWInstalled capacity

•≈ 4500 GwhGeneration

•9 billion of US$Investement

• 1 million TOEAnnual save

•3,7 million TonsCO2 emissionavoided

- Noor Ouarzazate 1 (160 MW, CSP) under operation- Noor Ouarzazate 2&3 (350MW, CSP) under construction, COD 2018-Noor PV I (170 MW, PV) under construction, COD S2 - 2018

-Noor Midelt (800 MW), under bidding process

Ouarzazate:

580 MW

ONEE’s assignments:

- Off-taker for Noor I, II & III

- Connection of solar projects and transmission of generated power

- Interconnection to the Grid access for export

12

A total of 1480 MW

Already 74% of the Target

IMPLEMENTATION THROUGH “INTEGRATED” PROJECTS

13

Our Vision: Optimize solar resource valorization

ELECTRICITY PRODUCTION

2000 MW by 2020

and more by 2030

INDUSTRIAL INTEGRATION LOCAL DEVELOPMENTRESEARCH &

DEVELOPMENT AND

TRAINING

For a competitive industry

For technology

improvement and

qualified resources

For an inclusive

development

IMPLEMENTATION THROUGH “INTEGRATED” PROJECTS

NOOR, A MULTI-SITE AND MULTI-TECHNOLOGY PLAN

NOOR

Tata

NOOR

Midelt

NOOR

Laâyoune

NOOR

Ouarzazat

e

NOOR

Boujdour

CSP PV

CSP PV

PV

PV

CSP PV

5 sites with a minimal capacity of 2 000 MW by 2020

Technologies combination to answer to identified needs while

optimizing the overall cost of the kilowatt hour and maximizing

synergies

NOOR, A MULTI-SITE AND MULTI-TECHNOLOGY PLAN

NOOR OUARZAZATE: A MULTI TECHNOLOGIES

COMPLEX

Capacity: 160 MW

Technology: CSP trough

Storage: 3 hours

Price: 1,62 MAD/kWh

CO2 emissions avoided:

~ 280 000 tCO2 / year

Capacity: 200 MW

Technology: CSP trough

Storage: > 7 hours

Price: 1,36 MAD/kWh

CO2 emissions avoided:

~ 380 000 tCO2 / year

Capacity: 150 MW

Technology: CSP Tower

Storage: > 7 hours

Price: 1,42 MAD/kWh

CO2 emissions avoided:

~ 250 000 tCO2 / year

Capacity: 70 MW

Technology: PV with

tracking system

NOORo I NOORo II NOORo III NOORo IV

A SOLAR COMPLEX OF 580 MW COMBINING 3 DIFFERENT SOLAR

TECHNOLOGIES

PLANT IN OPERATIONPLANT UNDER

CONSTRUCTION

PLANT UNDER

CONSTRUCTION

WORKS TO BE LAUNCHED

SOON

CO2 emissions avoided:

~ 87 000 tCO2 / year

Price: 0,44 MAD/kWh

Industrial integration:

30%*

* Real industrial integration reached: 34%

Industrial integration:

35%Industrial integration:

35%

15

NOOR LAAYOUNE AND NOOR BOUJDOUR: WORKS TO BE LAUNCHED SOON

NOOR

BOUJDOUR

Projects financed through green bonds for a total amount of 1 200 million dirhams

NOOR

LAAYOUNE

Capacity: 80 MW

Technology: PV with tracking

system

Price: 0,44 MAD/kWh

CO2 emissions avoided:

~ 104 000 tCO2/yearCapacity: 20 MW

Technology: PV with tracking

system

Price: 0,64 MAD/kWh

CO2 emissions avoided:

~ 24 000 tCO2/kWh

NOOR Laayoune and NOOR Boujdour: Under Construction

A DEDICATED SUPPORT FOR THE DEVELOPMENT OF A SOLARINDUSTRY

DEVELOPMENT OF A COMPETITIVE

MOROCCAN SOLAR INDUSTRY …

Skills development

Industrial

capabilities

reinforcement

… through two missions

Ambition Cluster supported by multisectorial institutions

… and by well-known partners

~ 250 beneficiaries

~ 150 hours of trainings

Excellence awards Summer school

Conferences Seminaries

CSP

mission in

Spain

QHSE trainings, diagnostic,

personal assistance

Almeria intership

Several actions

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A DEDICATED SUPPORT FOR THE DEVELOPMENT OF A SOLAR INDUSTRY

PRINCIPALES ACTIONSSTRATEGIC AXES

LOCAL DEVELOPMENT IN HARMONY WITH THE SOLARPOWER PROJECTS

Guidelines

Sustaining actionsCreate a local dynamismEnsure integration1 2 3

AGRICULTURE

Agriculture

Entrepreneurship

Development and facilitation of

territories

Education

SANTE

Health

Improving the population’s social

environment

Territories’s opening up

Basic infrastructures

EducationSociocultural

activitiesSports’ activities

Health Infrastructures Agriculture

More than 60 Actions and projects led since 2010

More than 30 000 beneficiaries

6 Areas of intervention

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Employment

Sponsorship / patronage

LOCAL DEVELOPMENT IN HARMONY WITH THE SOLAR POWER PROJECTS

RESEARCH AND DEVELOPMENT, A COMPLEMENTARY AXIS OF NOOR PLAN

R&D actions led alongside with national and international actors including:

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– Qualify new solar technologies

– Create a network between industrials and research institutions

An R&D Platform, to

This platform hosts:

Demonstration projects in order to test, qualify,

and improve plants’ components of all solar

technologies

Research projects to support technological

transfer and know how on CSP and PV

technologies

Commercial services to industrials and

universities for a global added value

RESEARCH AND DEVELOPMENT, A COMPLEMENTARY AXIS OF NOOR

PLAN

Hydro22%

Wind10%

Solar2%

Heavy Fuel25%

Coal31%

Natural Gas10%

2016

Hydro12%

Wind20%

Solar20%

Heavy Fuel4%

Coal21%

Natural Gas23%

2030

14 GW 22 GW

Hydro14%

Wind15%

Solar14%

Heavy Fuel13%

Coal36%

Natural Gas6%

2020

8,3 GW INSTALLED CAPACITY

30 Billions US$: Total Investments in Power Sector between 2016 and 2030

LONG TERM CAPACITY MIX IN MOROCCO

43% 52%34%PART OF RENEWABLES

RENEWABLES will increase up to 52% of the Capacity Mix by 2030

3 GW

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To manage the

intermittence

generated by

the massive

introduction of

renewables

Interconnection

(over 5000 MW)

+

Grid

Development

Capacity storage

(2000 MW of

Hydro Pump) +

(over 1500 MW

CSP)

Nexus

Power/Water

(Desalination)

Flexible Capacity

Gas to Power

RE Programs: an integrated and multidimensional vision

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SUPPORTING THE “RENEWABLE ENERGY” STRATEGY – 2030 –

A REGIONAL AND INTERNATIONAL INTEGRATION TO MAKE MOROCCO A SOLAR HUB

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SOUTH SOUTH COOPERATION1

• Morocco, Hub of expertise in the energy

field

SOUTH NORTH COOPERATION2

• Morocco, for a competitive green energy

exchange

MENA COOPERATION3

• Collaboration agreements

MASEN: PROMISING FUTURE PROSPECTS

Morocco today is :

Universal access to electricity for Moroccan citizens (> 99%)

11 GW operational assets

Business friendly environment (Investment Grade) with a proven

and bankable legal and contractual framework

More than 20 years IPP history:

▪ 2 procurement schemes (IPP tendering, Merchant IPP plant Law 13-09)

▪ 13 IPPs successfully financed

▪ 6 GW operational assets

▪ Exceeding 13 b$ financing already closed

▪ More than 70 financiers (DFI, ECA, Commercial banks, …)

Zero breaches of obligations

Strong and competitive Local Banks

Very competitive market (probably the lowest Tarif that has ever

been offered in Wind) southern Mediterranean

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CLOSING REMARKS

Morocco tomorrow is :

14 GW operational in 2020, and 25 GW by 2030

Almost 12 GW additional capacity to be developed by IPPs (2020-

2030)

52% Ren by 2030, more than 9 GW additional capacity (2017-2030)

Large scale Gas to Power projects (5 bcm and 2,4 GW by 2025 and 6

GW by 2030)

Power regional crossroads (more than 5 GW interconnections)

30 Billions US$ total investment (2016 and 2030) in the power sector

CLOSING REMARKS

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Thank you for your attention