RABAT, July 31 – Morocco’s National Office of Electricity and Drinking Water (ONEE) has approved a 248 billion dirham ($27 billion) investment programme for the 2026 to 2030 period, reinforcing the country’s strategy to accelerate its energy transition, expand renewable power generation and strengthen water security.
The investment plan was adopted by ONEE’s Board of Directors during a meeting in Rabat chaired by Minister of Economy and Finance Nadia Fettah. The programme allocates 206 billion dirhams to electricity projects and 42.1 billion dirhams to drinking water infrastructure, with 72% of the financing expected to come from the private sector.
According to ONEE, the programme is designed to accelerate the integration of renewable energy, expand electricity storage capacity, improve grid flexibility and strengthen the national transmission network. The investments are expected to enable Morocco to exceed its target of sourcing 52% of installed electricity capacity from renewable energy by 2028.
The electricity component includes 104 billion dirhams for renewable energy projects, delivering an additional 11.6 gigawatts (GW) of renewable generation capacity and 2.6 GW of energy storage, representing around 80% of the additional electricity capacity planned during the five-year period.
To improve grid reliability as renewable generation expands, the programme also includes the deployment of battery energy storage systems (BESS) with a combined capacity of 2,230 megawatt-hours (MWh), the construction of the 360 MW El Menzel pumped-storage hydropower plant, and a 3,744 MW natural gas flexibility programme to help balance electricity supply.
On the water side, ONEE’s investment plan focuses on securing drinking water supplies, expanding access in rural communities and improving the efficiency of existing distribution networks.
By the end of the programme, Morocco’s desalination capacity is expected to exceed 1.3 billion cubic metres of water annually, allowing desalination to meet 63% of the country’s drinking water demand, up from 13% in 2025 and less than 8% in 2023. Major desalination projects are planned for Casablanca, Oriental, Tangier, Souss-Massa, and Guelmim-Tan Tan.
Opening the board meeting, Nadia Fettah said the investment programme comes at a critical time as Morocco addresses major challenges related to the energy transition and national water security.
She also commended ONEE and its staff for implementing the country’s strategic priorities in energy, water and sustainable development.
ONEE Director General Tarik Hamane said the electricity and water sectors are undergoing significant transformation, driven by growing demand, pressure on water resources and continued volatility in fuel and raw material prices.
According to Hamane, ONEE will continue prioritising projects that support the decarbonisation of Morocco’s economy while encouraging greater private sector investment. He added that the utility has launched several strategic initiatives aimed at modernising its operations, improving management systems and strengthening long-term sustainability.
The board also reviewed ONEE’s 2025 performance, which showed installed electricity generation capacity reaching 12 gigawatts, with 46.1% coming from renewable energy sources, bringing Morocco closer to its national renewable energy target.
Electricity demand reached 49 terawatt-hours (TWh) during 2025, representing annual growth of 7.4%. Peak electricity demand reached 7,990 MW in August 2025 before rising to a record 8,400 MW in July 2026, an increase of 410 MW, or 5%, within a year.
For drinking water operations, ONEE produced 1,417 million cubic metres (Mm³) of water in 2025, comprising 977.8 Mm³ from surface water, 367.2 Mm³ from groundwater and 72.5 Mm³ from seawater desalination.
The utility also reported significant progress on the Casablanca desalination plant, currently the largest under construction in Africa and among the largest globally. The first phase, with a capacity of 200 million cubic metres annually out of a planned 300 million cubic metres, has reached 81% completion, with commissioning scheduled for 1 February 2027.
During the meeting, the Board also approved ONEE’s 2026 action plan, annual budget, 2025 financial statements and performance report, endorsing measures aimed at expanding the utility’s operations while improving its technical and operational performance.
The investment programme reinforces Morocco’s long-term ambition to strengthen energy independence, accelerate renewable energy deployment and improve climate resilience through expanded water infrastructure, while increasing the role of private capital in financing strategic national projects.
