Morocco to Revise the Surplus Energy Cap for Self-Production

Morocco is set to amend the allowable surplus electricity cap in self-production facilities, which was previously set at 20%. This change is outlined in an explanatory note for a new draft decree prepared by the Ministry of Energy Transition and Sustainable Development, currently under review by the General Secretariat of the Government.

The decree states that « the nature of the activity concerned by this production is linked to variable consumption, seawater desalination projects, and other strategic initiatives… ».

The ministry considers this revision necessary to expand the self-production sector by including potential new producers whose profitability depends on exceeding the 20% surplus energy cap that can be sold to the relevant grid operator.

Additionally, the ministry emphasizes that the law on self-production of electricity, published in the Official Gazette in 2023, was established through a participatory approach.

The decree identifies the categories of eligible producers for the cap revision, including:

• seawater desalination projects,
• strategic projects,
• waste landfill reclamation and the use of sludge from wastewater treatment plants,
• projects with variable energy consumption,
• and those that have seen significant consumption reductions due to energy efficiency measures.

The document also details the procedures for reviewing requests to adjust the 20% cap and outlines control mechanisms.

Enacted in 2023, this law allows citizens, as well as public and private stakeholders, to develop self-production facilities. It aligns with the recommendations of the New Development Model, aimed at decentralizing electricity production, promoting a low-carbon green economy, and enhancing the competitiveness of the national energy sector.