Power Generation, Transmission & Distribution 2026 Comparisons

Overview

Morocco’s electricity sector is organised around three core segments – generation, transmission and distribution. The state-owned National Office of Electricity and Drinking Water (Office National de l’Électricité et de l’Eau Potable, or ONEE) is the central actor across generation and transmission.

ONEE was created in 1963 as the National Office of Electricity (Office National de l’Électricité, or ONE) and subsequently merged with the national water utility office under Law No 40-09 (“Law 40-09”) to form the current unified entity in charge of the public service of electricity generation, transmission and distribution throughout the Kingdom of Morocco.

The sector does not currently include a distinct “supply” segment separated from distribution. There is also no standalone storage segment, although recent legislation has begun to address energy storage as part of decentralised and renewable energy frameworks.

Main Laws Governing the Sector

The ownership and structure of Morocco’s power industry are governed by several pieces of legislation, the most significant of which include the following.

• Organic Law No 113-14 relating to municipalities (“Law 113-14”), which vests in municipalities the competence to create and manage the public service of electricity distribution.
• Law 40-09, which establishes ONEE and harmonises national strategies in the electricity and water sectors.
• Law No 13-09 relating to renewable energies (“Law 13-09”), which opened the generation market to private operators producing electricity from renewable sources.
• Law No 82-21 relating to self-generation (“Law 82-21”), which regulates the self-generation of electricity, allowing private companies to produce electricity for their own consumption and to sell surplus energy through the grid.
• Law No 48-15 on the regulation of the electricity sector and the establishment of the ANRE (“Law 48-15”), which creates the National Electricity Regulatory Authority (Autorité Nationale de Régulation de l’Électricité, or ANRE) as an independent regulatory body overseeing the electricity sector.
• Law No 83-21 relating to the creation of regional multiservice companies (“Law 83-21”), which restructured electricity distribution at regional level through the creation of regional multiservice companies (sociétés régionales multiservices, or SRMs).
• Law No 57-09 creating the Moroccan Agency for Solar Energy (Masen) (“Law 57-09”), as amended by Laws No 37-16 and 38-16, which reconfigure Masen, expanding its mandate from the initial solar programme to all renewable energy technologies.

Bundling and Unbundling

Morocco’s power industry has historically operated under a bundled model, with ONEE acting as a vertically integrated public establishment responsible for generation, transmission and distribution.

The sector is undergoing a transition towards unbundling. The regulatory framework provides for accounting separation of ONEE’s activities to enable cost transparency.

Recent legislative reforms (Laws No 40-19 and 82-21) lay the groundwork for a more open market, envisaging an independent transmission system operator (TSO) and a strengthened regulator to guarantee fair grid access.

Ownership Structure

Ownership of the power industry reflects a combination of state and private participation, varying by segment.

• Transmission remains a state monopoly under ONEE, which is the sole owner and operator of the national grid and cross-border interconnections.
• Distribution is managed through a mixed framework. Municipalities may operate distribution directly through municipal utilities (régies communales) or delegate it to private concessionaires. Recently, the distribution sector has been reorganised through the intervention of the SRMs.
• Generation is the most liberalised segment. While ONEE remains the dominant producer (acting directly or on the basis of power purchase agreements (PPAs) entered into with private independent power producers (IPPs)), Law 13-09 and its subsequent amendments have opened the generation of renewable energy to private developers, which may produce and sell electricity directly to consumers connected to the high or medium voltage grid through corporate PPAs. MASEN – a state-owned company whose capital is shared among the State, ONEE, the Hassan II Fund and the Société d’Investissements Énergétiques – plays a key role in piloting large-scale renewable energy projects.
• Storage is an emerging segment that has not yet reached maturity, although recent legislative developments – in particular Law 82-21, which expressly allows a self–producer to set up an energy storage installation and benefit from storage services under conditions to be set by regulation (Article 15), and Law 13-09 as amended by Law No 40-19 – address the development and operation of storage facilities.

Generation

The country’s main generation assets are owned and operated primarily by (i) ONEE, a public establishment/State-owned entity, (ii) MASEN, a state-owned joint-stock company, and (iii) private IPPs.

ONEE is the main public establishment involved in electricity generation. Although its own share of output had fallen to around 30% by 2017, ONEE remains at the core of generation activity through its role as single buyer, purchasing the output of IPPs and MASEN-developed plants under long-term PPAs. ONEE has also launched a programme of gas-fired power plants, notably the Orion gas-to-power programme with TAQA, NAREVA and the Mohammed VI Fund for Investment.

MASEN is a joint-stock company (société anonyme) held predominantly by the Moroccan State, and established under Law 57-09. Its mission is to develop, finance, construct, operate and maintain renewable energy installations (“REN Facilities”). Pursuant to Law 38-16, ONEE must progressively transfer to MASEN the assets relating to its REN Facilities, subject to defined exceptions. MASEN owns and operates a significant portfolio of renewable generation assets but does not own transmission or distribution networks, and sells electricity primarily on a wholesale basis to ONEE.

Private IPPs contribute approximately 50% of gross national generation output under long-term PPAs with ONEE. The main IPPs are JLEC/TAQA, Safi Energy Company and Énergie Électrique de Tahaddart, but there are also various other wind and solar IPPs and self-producers active in the country.

Transmission

ONEE is the sole owner and operator of the national transmission grid and cross-border interconnections, responsible for all investments in, and operation and maintenance of, transmission infrastructures. It sets the rules for grid access and manages the real-time balance between supply and demand.

Distribution

Electricity distribution in Morocco is organised under Law 113-14, which entrusts municipalities with the management of the public service of electricity distribution. The sector is currently undergoing significant restructuring: under Law 83-21, electricity and water distribution services are being merged into new SRMs. Moreover, operators of industrial acceleration zones (zones d’accélération industrielle) are empowered to develop and operate electricity distribution grid within their zones.

Supply (Retail)

ONEE remains the primary seller of electricity to end-user consumers connected to the Moroccan transmission grid. Such consumers can also enter into PPAs with private IPPs in accordance with Law 13-09 or develop their own self-generation projects under Law 82-21.

Consumers connected to the distribution grid purchase electricity directly from the relevant SRM or, as the case may be, from private IPPs.

General Investment Framework

Morocco does not impose sector-specific foreign investment restrictions in the power industry.

There is no foreign investment screening mechanism, no prior governmental approval to invest, and no foreign ownership caps.

The Investment Charter (Law No 03-22) enshrines the foundational principles governing foreign investment, including freedom of enterprise, free competition, transparency, equal treatment of investors regardless of nationality, and legal certainty.

Foreign investors further benefit from a convertibility regime guaranteeing the free transfer of net after-tax profits and divestment proceeds.

Morocco’s extensive network of bilateral investment treaties provides for fair and equitable treatment, non-discrimination and protection against uncompensated expropriation, with access to international arbitral tribunals including under the International Centre for Settlement of Investment Disputes (ICSID) Convention.

Sector-Specific Authorisations

In addition to the general investment framework, the construction and operation of power generation projects require sector-specific administrative authorisations.

Under Law 13-09, projects of 2 MW or above are subject to a two-stage authorisation regime – a construction authorisation and then an operation authorisation – valid for a maximum of 25 years and renewable once. Projects between 20 kW and 2 MW are subject to a declaration regime. Only private-law legal persons incorporated in Morocco may apply for such authorisation, and any change of control requires prior administrative approval.

Self-generation projects are governed by Law 82-21, establishing a three-tier regime: (i) declaration for off-grid and sub-threshold low-voltage installations; (ii) connection agreement for installations up to 5 MW on low/medium-voltage networks; and (iii) permit from the Ministry of Energy Transition and Sustainable Development (Ministère de la Transition Énergétique et du Développement Durable, or MTEDD) for installations of 5 MW or more. Any modification requires prior approval (Article 9).

These sector-specific authorisations apply concurrently with the other permitting and approval regimes deriving from applicable law (eg, environment, town planning, approvals required to use or acquire certain categories of land, etc).

Generation Assets

A distinction must be drawn between assets developed by private operators under Law 13-09 and assets developed by ONEE or Masen under long-term IPP arrangements.

Renewable energy projects under Law 13-09

Renewable energy installations developed by private operators are governed by Law 13-09.

• Installations above 2 MW require nominative authorisation from the MTEDD. Transfer of an authorisation (≥ 2 MW) is void in the absence of prior administrative approval.
• Installations between 20 kW and 2 MW are subject to a declaration regime. Transfer of a declared installation requires only prior notification.

A change of control is treated as an indirect transfer subject to prior approval of the MTEDD.

At the expiry of the authorisation (maximum 25 years, renewable once), the facility and site revert to the State free of encumbrances, or are dismantled at the operator’s expense.

Projects developed by ONEE

Generation projects developed by ONEE through IPP arrangements are typically structured as build-own-operate-transfer (BOOT) based on long-term PPAs. The generation assets revert to ONEE following the PPA term, and any transfer or change of control of the IPP is subject to approval modalities defined in each PPA.

Projects developed as part of the Masen programme

For large-scale renewable projects, Masen selects private developers through competitive tenders and structures each project through a dedicated project company in which it holds a minority stake. The output produced by such project company is sold to Masen and ultimately to ONEE. Any transfer of assets or change of control in the project company is governed by the project-specific agreements (PPA, shareholders’ agreement and framework convention with the State).

Transmission Assets

Transmission infrastructure remains under ONEE’s exclusive ownership and operation on the basis of Dahir (ie, Royal Decree) No 1-63-226 (“ONEE Dahir”). Transmission assets cannot be freely transferred or sold to private operators.

Distribution Assets

Electricity distribution networks form part of the public domain of the relevant municipality; they are placed at the SRM’s disposal as returned assets (biens de retour) under the relevant delegated management contract. Hence, they may not be assigned, sold, leased or encumbered for the duration of that contract (Law 83-21, Articles 11 and 12). Following the enactment of Law 83-21, the distribution sector is being restructured through SRMs, incorporated as joint-stock companies at regional level (Article 2). SRMs may open their share capital to private investors, provided the State’s shareholding does not fall below 10% (Article 4).

Overview

Morocco does not have a single independent central planning authority for the electricity sector. Instead, oversight and planning functions are shared among several state entities. ONEE acts as the de facto central system operator and planner, under the regulatory oversight of ANRE.

MTEDD

The MTEDD holds primary responsibility for energy policy, including security of supply and the low-carbon transition. It elaborated the 2009 National Energy Strategy targeting 52% of installed generation capacity from renewable sources by 2030. The MTEDD exercises administrative supervision over ONEE, Masen and other energy agencies, and has decision-making authority over authorisations for renewable energy installations under Law 13-09 and self-production installations of 5 MW or more under Law 82-21.

ONEE as System Planner and Operator

ONEE is the sole owner and operator of the national transmission grid, responsible for investment, operation, maintenance and real-time supply-demand balancing. It prepares multi-year generation equipment plans and manages interconnections.

Masen

Masen identifies and programmes renewable energy generation capacities on the basis of the multi-year capacity plan prepared by ONEE and approved by the government. Its missions include site qualification studies, project development, and mobilising financing for renewable energy installations.

ANRE

ANRE exercises regulatory oversight currently confined to the free-market segment (renewable generation under Law 13-09 and self-generation under Law 82-21), to the exclusion of the regulated market. Its functions include approving the national transmission grid code (Code du Réseau Électrique National de Transport, or CRENT), the multi-year transmission investment programme, and setting grid access and transmission tariffs. ANRE also approves and publishes the system’s hosting capacity (capacité d’accueil) under Laws 13-09 and 82-21, and must be consulted prior to the issuance of authorisations for renewable energy generation installations.

The following material regulatory and legal changes occurred over the past year.

• Renewable energy and self-generation:Laws No 40-19 and 82-21, both promulgated in February 2023, restructured the renewable energy and self-generation legal regimes. The implementing decree for self-generation (Decree No 2-25-100), published on 9 March 2026, resulted in the legal regime being fully operational since 9 June 2026.
• ANRE hosting capacity decision: On 30 January 2026, the ANRE Council adopted Decision No 01/26 setting the national grid hosting capacity for renewables at 3,886 MW in 2026, to be progressively raised to 10,429 MW by 2030 with a split between wind (up to 4,915 MW on the transmission network) and solar (up to 5,514 MW, including 1,324 MW on distribution networks).
• New tariffs for surplus electricity: In February 2026, ANRE published decisions fixing, for the first time, the tariff applicable to the sale of the surplus electricity injected by self-generators to the grid, and adjusting the transmission network tariff (Tarif d'Utilisation du Réseau de Transport, or TURT) to 6.85 centimes per kilowatt-hour (cDH/kWh) and the distribution network tariff (Tarif d'Utilisation du Réseau de Distribution, or TURD) to 6.07 cDH/kWh. This tariff structure has been effective since 1 March 2026.
• Accounting unbundling and grid code:In February 2025, ANRE approved the accounting separation of ONEE’s generation, transmission and distribution activities – a prerequisite for transparent cost allocation and eventual structural unbundling. ANRE also approved the TSO Code of Good Conduct in September 2024 and launched a tender to update the transmission grid code (CRENT).

Several major reforms have been announced and are expected to materially reshape Morocco’s power sector in the near term.

• ANRE’s transformation into a multi-energy regulator:Following Royal Instructions of 4 December 2024, ANRE is set to become a national energy regulatory authority, with its mandate expanded beyond electricity to cover natural gas, hydrogen and its derivatives, as well as production, storage, transport and distribution activities.
• Comprehensive tariff reform:ANRE announced in December 2025 a planned overhaul of the electricity tariff system for 2027, aimed at reflecting the true cost of electricity and separating distribution and supply activities.
• Pending self-generation decrees:While Decree No 2-25-100 (published in March 2026) operationalises the self-generation framework, key implementing texts remain outstanding, notably decrees on the 20% surplus injection cap, energy storage modalities and curtailment.
• Natural gas law:If passed, a draft law on natural gas (No 67-24), published for consultation in late 2024, will regulate the import, export, storage, transport and distribution of gas, with ANRE ensuring equitable access to infrastructure. These evolutions may ultimately have an impact on the development of new power generation using gas fire technology.

Interesting aspects of the Moroccan power industry include the following.

• A hybrid market structure dominated by one vertically integrated operator: ONEE remains present across the entire value chain – production, transport and distribution – while acting as single buyer and grid operator, and was without effective accounting separation until ANRE’s Decision No 04/25 of February 2025. This coexists with a liberalised renewable energy market (Law 13-09) in which IPPs sell directly to industrial consumers via corporate PPAs.
• A fragmented regulatory landscape in consolidation: Oversight was split between the MTEDD (policy and authorisations), the Ministry of Interior (municipal distribution) and ANRE (tariffs and grid access for the free market only). The December 2024 Royal Instructions to transform ANRE into a full-scope energy authority covering electricity, gas and hydrogen signal a move towards unified regulation.
• Simultaneous restructuring of distribution and transport: Morocco is currently undergoing a parallel overhaul of both its distribution segment (creation of 12 regional SRMs open to 90% private capital, replacing ONEE, municipal utilities and private concessions) and its transmission segment (recommended unbundling of ONEE into an independent TSO).

Absence of a Wholesale Electricity Market

Morocco does not have an organised wholesale electricity market. There is no power exchange, spot market, or day-ahead or intra-day trading platform. Instead, electricity procurement operates under two parallel structures.

• Regulated segment (single-buyer model):ONEE purchases electricity from IPPs and Masen under long-term PPAs and from imports via interconnections, then resells wholesale to distribution utilities (now SRMs) and supplies certain end users directly. Both price levels are State-administered through a ministerial order fixing wholesale and retail tariffs. ANRE does not set energy sale prices; its tariff competence is limited to grid-use tariffs (TURT/TURD) under Articles 14 to 16 of Law 48-15.
• Open segment (Laws 13-09 and 82-21):Private renewable energy producers may sell directly to eligible consumers connected to the national grid through bilateral contracts at freely negotiated prices. However, the competitive market segment remains relatively small and concentrated on a few major industrial consumers connected to the transmission network. Surplus electricity from renewable producers and self-producers is purchased by the relevant grid operator at the tariff fixed annually by ANRE.

Capacity and Energy Markets

Morocco does not operate a separate capacity market or energy-only market. System adequacy is ensured through ONEE’s generation master plans, long-term PPAs with built-in capacity payments (take-or-pay structures), and ANRE’s approval of capacity hosting and transmission investment programmes.

There is no nodal pricing. The transmission tariff (TURT) is set uniformly by ANRE, and the distribution tariff (TURD) applies at the medium-voltage level.

High-Load Consumers

Morocco does not have a specific regulatory framework addressing high-load consumers such as data centres. Such facilities are subject to the same tariff structures and market access options as other large industrial consumers.

ONEE’s regulated tariff structure is differentiated by customer category. For large accounts (high and very-high voltage), tariffs are built on subscribed capacity and time-of-use bands, with a fixed charge and excess-capacity charge. For small consumers, tariffs are based on consumption brackets under a progressive system.

Open Market Access

Large industrial consumers connected at high voltage (HV) and very high voltage (VHV) may benefit from the open market under Law 13-09, entering into direct purchase agreements with private renewable producers. The HV and VHV markets have become saturated, making access to the medium-voltage market – now enabled by ANRE’s TURD decision – essential for further development of the competitive segment.

Law 82-21 allows consumers to install their own generation capacity from any source and sell excess to the grid operator. ONEE also maintains peak and off-peak regulated tariffs for industrial users to reduce demand in peak periods, prioritising voluntary load shedding before using imports or storage as peak-shaving sources.

Permissibility

Imports and exports of electricity are permitted. ONEE manages power exchanges as system operator and has held a licence to operate in the Spanish power market since 1999. Under Law 13-09, operators of renewable energy installations connected to the national transmission grid may export electricity, subject to the TSO’s opinion and the MTEDD’s agreement.

Jurisdictions and Main Active Interconnections

• Spain (European grid): Morocco and Spain are connected by two 400 kV submarine/overhead interconnection lines (1997 and 2006). ONEE trades electricity bilaterally with Red Eléctrica de España.
• Future interconnections: Plans include a third subsea interconnector with Spain, a new interconnection with Portugal, and engagement with African neighbours. Morocco is a member of the Maghreb Electricity Committee (COMELEC).

Circumstances of Imports and Exports

Imports typically occur during peak demand periods, when domestic generation is insufficient or more expensive. By 2017, imports reached approximately 5,955 GWh, representing 16% of gross output. Imports serve as a key source of system flexibility, used alongside pumped storage, CSP storage and gas-fired plants.

Morocco became a net exporter in 2019, primarily due to the commissioning of the Safi coal-fired power plant (1,386 MW) and the expansion of renewable energy capacity. In 2024, exchanges via the Spain interconnections stood at 2,539 GWh, representing 5.5% of national electricity demand.

Reviews and Approvals

• ONEE-managed exchanges: Imports and exports in the regulated segment are managed directly by ONEE. No separate regulatory approval is required for each transaction; ONEE determines volumes based on economic arbitrage and system needs.
• Private renewable energy exports: Under Law No 40-19, export requires the TSO’s opinion and the MTEDD’s agreement. An export agreement with the TSO defines technical and economic conditions for access to interconnections. A copy must be notified to ANRE. Where grid capacity is insufficient, operators may build direct transmission lines for export.
• ANRE oversight: Under Law 48-15, the TSO proposes to ANRE – for approval – the rules and tariff for access to interconnections, established on a non-discriminatory basis.

Pricing

• Imports: ONEE imports electricity from Spain when spot prices on the Iberian Electricity Market (Mercado Ibérico de Electricidade, or MIBEL) are lower than its marginal domestic generation cost. There is no domestic market clearing price; the cost is absorbed into ONEE’s overall supply cost.
• Exports:ONEE holds a licence to trade surplus electricity on MIBEL. For private exporters, pricing is governed by the export convention with the TSO, and an annual exploitation duty is payable to the State.

Overview

Morocco’s electricity supply mix is diversified across thermal, renewable and imported sources. In 2024, total installed capacity reached 12,017 MW, of which 5,439 MW (45%) came from renewable sources. National production exceeded 43,700 GWh (ONEE, Rapport d’activités Énergie Électrique 2024, p. 4). However, renewables’ share of actual output remains lower than their share of installed capacity due to the intermittent nature of wind and solar.

Generation by Source

Coal remains the dominant source, accounting for approximately 60% of domestic power output. It plays a central role in baseload generation.

Natural gas contributes through combined-cycle and integrated solar-combined-cycle plants. Supply was disrupted by the closure of the Maghreb–Europe gas pipeline in late 2021 but resumed through reverse flow from Spain.

Oil-fired generation is playing a declining role as older plants are progressively displaced by renewables.

Wind energy is the leading renewable source, contributing approximately 21% of national production in 2024. Solar energy is produced through CSP and photovoltaic technologies, while hydropower output varies with annual rainfall.

Imports

Electricity imports, primarily from Spain, provide supplementary supply and system flexibility (see 2.2 Electricity Imports and Exports).

In summary, Morocco’s supply mix remains structurally dependent on coal for baseload generation, while renewable energy capacity is expanding rapidly towards the national target of 52% of installed capacity by 2030.

• Absence of sector-specific concentration limits: There are no sector-specific concentration limits on the percentage of electricity supply that may be controlled by any one entity. No law imposes a cap on market share in the electricity sector. This is consistent with the market structure, in which ONEE holds a dominant position across generation (44.6% of installed capacity), transmission (monopoly) and distribution (~58% of volumes sold nationally).
• General competition law: In the absence of sector-specific rules, the principal law governing market concentration is Law No 104-12 on Freedom of Pricing and Competition (“Law 104-12”), as amended by Law No 40-21. This law applies to all persons and all activities of production, distribution and services, including public-law entities acting as economic operators.
• Notification thresholds: Under Article 12 of Law 104-12 and Decree No 2-23-273, a concentration must be notified before completion when: (i) the combined worldwide turnover exceeds MAD1.2 billion and the Moroccan turnover of at least one party exceeds the regulatory threshold; (ii) the Moroccan turnover of at least two parties exceeds the threshold; or (iii) the parties hold more than 40% of a national market for identical or substitutable goods or services.
• Review process and standstill: The Competition Council must rule within 60 days (extended by 20 days for commitments). It may authorise, authorise subject to conditions, or prohibit. An in-depth review of up to 90 days may be opened. No concentration may be completed before the Council’s decision unless a derogation is granted.
• Sanctions: Failure to notify may result in a pecuniary sanction of up to 5% of turnover (excluding VAT) realised in Morocco during the last closed financial year, together with an order to notify or restore the prior state.
• Abuse of dominant position: Separately, Article 7 of Law 104-12 prohibits the abusive exploitation of a dominant position in the domestic market or a substantial part thereof.
• Interaction with the sector regulator: Under Article 56 of Law 48-15, ANRE may refer to the Competition Council any practice in the electricity sector likely to constitute a restriction on competition.

Market Context

Morocco does not operate a competitive wholesale electricity market. However, anti-competitive behaviour surveillance is relevant to the open market segment under Laws 13-09 and 82-21, to grid access conditions and to the broader conduct of market participants.

Principal Laws and Prohibited Practices

Law 104-12 prohibits: (i) anti-competitive agreements (Article 6), including price-fixing, market allocation, restriction of output and bid rigging; and (ii) abuse of a dominant position (Article 7), including refusal to deal, tying, discriminatory conditions and excessive prices. ANRE may refer suspected restrictions to the Competition Council under Law 48-15. 

The Competition Council examined the sector in Opinion No A/1/24 of 28 March 2024 relating to the electricity sector.

Regulator, Investigation Powers and Jurisdiction

The Competition Council is the principal enforcement authority. It may open investigations on its own initiative or upon referral, conduct investigations through its case officers (rapporteurs), compel production of documents, enter business premises and seize documents with judicial authorisation, and hear any relevant person.

ANRE exercises complementary sector-specific surveillance: it oversees non-discriminatory grid access and accounting separation, and it can conduct on-site audits and settle disputes between grid users and operators.

Enforcement Procedures and Sanctions

Following the investigation, the General Rapporteur (Rapporteur Général) notifies a statement of objections. The Competition Council rules on an adversarial basis; it may order interim measures or accept commitments.

Pecuniary sanctions may reach 10% of highest worldwide turnover, doubled for recidivism (Article 39). Leniency is available (Article 41). Criminal sanctions apply to individuals: imprisonment of two months to one year and/or a fine of MAD10,000 to MAD500,000 (Article 75). Obstruction is punishable by up to 1% of worldwide turnover (Article 73).

Principal Laws

The construction and operation of generation facilities in Morocco are mainly governed by the following laws:

• ONEE Dahir, which created ONE (now ONEE) and provides ONEE with an exclusive right to develop generation facilities above except for certain renewable energy and self-production facilities (Article 2).
• Decree-Law No 2-94-503, which allows ONEE to enter into power purchase agreements with independent power producers, enabling private generation within the regulated segment.
• Law 13-09, which provides a specific legal framework for the development of renewable energy generation by private and public entities; establishes authorisation and declaration regimes; defines grid access conditions; sets capacity hosting limits; and addresses storage, certificates of origin and commercialisation of renewable electricity (Articles 2–30).
• Law 82-21, which organises self-production of electricity regardless of source, voltage or capacity; sets declaration and authorisation thresholds; and subjects grid-connected renewable self-production to the capacity hosting limit (Articles 1, 4–6).
• Law 48-15, which establishes the regulatory framework for the electricity sector and creates ANRE. ANRE provides advisory opinions on authorisation requests and approves the capacity hosting of the system (Articles 3–4).
• Law No 57-09, as amended by Laws No 37-16 and 38-16, which establishes Masen and defines its role in developing integrated renewable energy projects through competitive public-private partnership (PPP) tenders.

The above sector-specific framework applies without prejudice to the rules of ordinary law, in particular those governing construction and environmental protection.

Regulatory Process

The regulatory process depends on the applicable legal regime and the capacity of the installation. Timelines vary significantly depending on project type, voltage level, grid connection requirements, environmental approvals and land access.

Renewable generation under Law 13-09

• Authorisation regime (≥ 2 MW): The applicant submits a dossier to the MTEDD, which obtains the TSO’s technical opinion (and, for medium-voltage connections, the distribution grid operator’s) within one month. ANRE issues a non-binding opinion. Once construction is complete, the operator has three months to apply for the operating authorisation, issued within two months. For hydropower, the hydraulic basin agency’s opinion is also required and the construction period is five years.
• Declaration regime (< 2 MW): A simplified declaration with a technical opinion from the distribution grid operator is required to obtain a receipt acknowledging the declaration to the MTEDD.

Self-production under Law 82-21

Non-grid-connected installations are subject to a declaration regime with the MTEDD. Grid-connected installations are subject to declaration, a connection agreement or ministerial authorisation depending on capacity, with the 5 MW threshold triggering ministerial authorisation.

• Conventional generation: For conventional generation facilities (coal, gas, fuel oil), there is no open licensing regime. Projects are developed either by ONEE directly or by private IPPs under long-term PPAs negotiated on a project-by-project basis under Decree-Law No 2-94-503.
• Masen projects: Private developers are selected through Masen-organised competitive tenders. Masen manages procurement, co-ordinates approvals and facilitates land access.
• Siting and land access:The developer must separately obtain land access rights, rights of way and urbanistic permits. Law 13-09 provides that public land may be made available for renewable energy projects under conditions set by regulation. For green hydrogen projects under the Offre Maroc, Masen co-ordinates preliminary land reservation.

Environmental Review

Renewable energy generation projects subject to the authorisation regime under Law 13-09 require an environmental impact assessment (EIA) in accordance with Law No 12-03 and should therefore also be subject to an environmental acceptability decision.

Public Participation

There is no general requirement for public hearings under Law 13-09 or Law 82-21. Public participation is integrated into the EIA process through a public inquiry (enquête publique) phase during which affected communities may submit observations.

Authority to Grant Authorisations

The MTEDD has authority to grant construction and operating authorisations for renewable generation facilities. ANRE provides non-binding advisory opinions but does not issue permits. For Masen-led projects, Masen manages procurement and the State enters into framework conventions.

Law 13-09 Projects (Renewable Energy Open Market)

Under Law 13-09, generation facilities of 2 MW or more are subject to a two-stage authorisation regime: a construction authorisation, then an operating authorisation. Facilities below 2 MW are subject to a prior declaration regime.

Typical conditions imposed upon authorisation include the following.

• The applicant must be a legal entity headquartered in Morocco, in compliance with tax authorities and the National Social Security Fund (CNSS), and not in bankruptcy.
• The applicant must demonstrate adequate technical and financial capabilities; the quality of equipment, materials and personnel qualifications is assessed.
• A technical opinion from ONEE (as grid transport operator) is required; for installations connected to the distribution network, the opinion of the relevant distribution grid operator must also be obtained.
• Renewable energy projects of 2 MW or more, including solar and wind, must be located within development zones designated by the energy administration. 
• Installations may only be connected within the limits of the available grid hosting capacity (capacité d’accueil), validated and published annually by ANRE.
• The construction authorisation lapses if the facility is not completed within five years.
• The operating authorisation has a maximum duration of 25 years, renewable once for the same period.
• Operators must pay a transmission wheeling fee (timbre de transport) and a system services fee (timbre de services système).
• Any change of control in the shareholding of the authorised entity requires prior administrative approval, failing which the authorisation may be withdrawn.
• Operators must apply a national preference principle in their supply, construction and service contracts.
• The grid operator may curtail (écrêter) renewable energy injection beyond a regulatory threshold, with financial compensation triggered only above that threshold.

Law 82-21 Projects (Self-Generation)

Under Law 82-21, the applicable regime depends on installation capacity and grid connection:

• Off-grid installations (any capacity): prior declaration to the MTEDD;
• Grid-connected installations below a regulatory threshold: declaration to the distribution grid operator;
• Installations above that threshold but below 5 MW (low or medium voltage): connection approval (agrément de raccordement) from both the transport and distribution grid operators; and
• Installations of 5 MW or more (medium, high or very high voltage): formal authorisation from the MTEDD, after the technical opinion of the TSO.

Typical conditions imposed include the following.

• Renewable energy self-generation installations are subject to the grid hosting capacity limit (capacité d’accueil).
• Self-generators connected to the grid must pay system service fees, the amount of which will be set by ANRE.
• Surplus energy may be sold to the relevant grid operator, capped at 20% of annual production, at a price to be fixed by ANRE.
• All grid-connected installations must be equipped with smart meters.
• The self-producer must own the installation or have the right to manage it.

Amendment or Relaxation of Terms

Neither Law 13-09 nor Law 82-21 establishes a specific procedure for requesting an amendment or relaxation of authorisation terms.

However, several mechanisms exist.

• The construction authorisation under Law 13-09 could initially be extended by two additional years beyond the original three-year completion deadline; Law No. 40-19 has since extended the base completion period to five years for hydroelectric installations.
• The operating authorisation (25 years) is renewable once for the same duration upon application.
• Any modification to the installation’s capacity requires a new authorisation or declaration, as the case may be.
• Changes of control in the authorised entity’s shareholding must receive prior administrative approval.

In practice, amendments are handled on a case-by-case basis through direct engagement with the MTEDD and, where relevant, with ONEE and ANRE. The MTEDD retains broad administrative discretion, which has been criticised by the Competition Council as potentially discriminatory due to the absence of clear, standardised criteria.

Eminent Domain/Expropriation Rights for Generation Facilities in Morocco

Under Moroccan law, a proponent for the siting, construction and operation of a generation facility does not inherently hold eminent domain or expropriation rights.

However, Law No 7-81 on Expropriation for Public Utility and Temporary Occupation (“Law 7-81”) provides that the right of expropriation is open to the State, local authorities (collectivités territoriales), and other public or private legal entities to which the public authority delegates its rights for carrying out works declared of public utility. A private developer may therefore benefit from expropriation rights if acting as a public service concessionaire, private partner under a PPP scheme or the like.

How Occupancy and Use Rights on Project Sites Are Obtained

The method for obtaining rights to land depends on the legal status of the relevant parcels:

• Public domain of the State or local authorities (domaine public): Land is mobilised through temporary occupation permits issued by unilateral administrative act. These permits are precarious and revocable.
• Private domain of the State (domaine privé de l’État): Land may be acquired through sale or lease authorised by the Ministry of Economy and Finance.
• Forestry domain (domaine forestier): Occupation requires a unilateral authorisation issued by the Director General of the National Water and Forests Agency. It is precarious, revocable, and limited to a maximum of nine years, renewable.
• Private land: Where the land needed is privately owned and the project is declared of public utility, expropriation under Law 7-81 may be pursued. In the case of private development (Law 13-09), land rights can be secured through leases or acquisitions entered into with relevant landowners.

Compensation Requirements

Expropriation under Law 7-81 requires fair and prior compensation (indemnité juste et préalable), as guaranteed by Article 35 of the Constitution. Indemnity covers only actual, certain, and direct damage and may not extend to speculative or indirect harm (Article 20). The quantum is determined as follows:

• The indemnity is fixed based on the property’s value on the date of the judicial decision ordering the expropriation.
• Improvements made without the expropriating party’s consent after publication of the public utility declaration are excluded.
• Indemnity cannot exceed the property’s value on the date of publication of the acte de cessibilité, and speculative increases post-declaration are disregarded.
• The process has two phases: an administrative phase (where the State and the owner may agree on value) and, failing agreement, a judicial phase in which the administrative court determines compensation.

In practice, valuation relies on comparative market methods, and courts may order independent expert appraisals.

Decommissioning Requirements

There is no express statutory obligation under Law 13-09 or Law 82-21 requiring the operator to set aside decommissioning funds over the physical life of the facility or to constitute a decommissioning reserve during the operational period.

The bank guarantee required under Law 13-09 secures project realisation, not decommissioning. No pre-funded decommissioning mechanism has been established.

Decommissioning costs are therefore typically borne at the end of the project’s economic life, when the MTEDD requires dismantling and site restoration.

For Masen-led projects and IPP projects under PPAs, decommissioning funding arrangements, if any, are determined by the specific contractual provisions of each PPA.

Obligation to Fund Decommissioning

Law 82-21 does not contain specific provisions on decommissioning. General environmental legislation applies, requiring the operator to restore the site in accordance with applicable environmental requirements at the end of the project’s life.

Under Law 13-09, the decommissioning obligation is conditional: it arises only where the MTEDD expressly requires dismantling and site restoration. Otherwise, the installation is taken over by the State. At the expiry of the operating authorisation (maximum 25 years, renewable once), the installation and site become State property free of all charges. Where required, the operator must carry out dismantling and restoration at its own expense.

The principal laws governing the ownership, construction and operation of transmission lines and associated facilities (including storage) in Morocco are as follows.

• ONEE Dahir, which vests in ONEE the responsibility for the public service of electricity transmission.
• Decree No 2-73-533 (November 1993), which approves the specifications (cahier des charges) applicable to the ONEE’s activities (the “ONEE Specifications”).
• Law 48-15, which defines the role of the TSO, mandates accounting separation of ONEE’s transmission activities, requires ANRE approval of the multi-year transmission investment programme, and establishes non-discriminatory grid access.
• CRENT (approved by ANRE in December 2021, effective from January 2022), which is the principal regulatory code governing planning, connection, access and operation of the transmission network.
• Law 40-09, which establishes ONEE and confirms its mission over the transmission grid.
• Law 13-09, which provides for direct transmission lines where national grid capacity is insufficient, under a concession with the TSO.

Regarding storage activities, there is no standalone legal regime. Storage is regulated under Laws 13-09 and 82-21, and is progressively being integrated into the CRENT.

Large transmission infrastructure projects are subject to environmental impact assessment under general environmental legislation. The CRENT also requires environmental studies for direct transmission lines.

The construction and operation of transmission lines forming part of the national transmission grid falls within ONEE’s exclusive competence. Under Article 2 of the ONEE Dahir, ONEE is empowered, following approval of its programmes, to carry out works relating to electricity transmission and to operate the corresponding transmission infrastructure.

ONEE has the authority to permit third-party operators to construct a segment of the electricity transmission grid. This arrangement applies where the grid connection is carried out by the private partner, at its own expense and risk, under the oversight of the ONEE. For this specific type of project, the ONEE enters into a dedicated agreement that sets forth the terms under which the investor will develop a portion of the transmission infrastructure in compliance with the ONEE’s technical specifications and standards, and stipulates that the completed works must be accepted by the ONEE prior to any connection to the transmission network.

The ONEE Specifications (Cahier des Charges) require ONEE to submit its projects for approval to the MTEDD and to request authorisation to energise installations upon completion of works.

Under Law 13-09, independent producers are also entitled to construct a dedicated line for the purpose of exporting electricity. This possibility is subject to obtaining specific authorisation from the ONEE and to the conclusion of a concession agreement with that entity.

Although transmission networks are not expressly listed among projects subject to mandatory EIA, an environmental impact assessment is generally carried out in practice to obtain an environmental acceptability decision, issued following a public inquiry.

There is no specific licence relating to the development of transmission line and associated facilities. Please see 4.2 Obtaining Approvals to Construct and Operate Transmission Lines and Associated Facilities.

Eminent Domain and Expropriation

Under Article 3 of Law 7-81, the State and the local authorities have compulsory purchase powers (droits d’expropriation) justified by the public interest (utilité publique). Existence of a public interest must be decided by an administrative decision defining the area subject to a compulsory purchase procedure. In addition, Article 50 of Law 7-81 recognises temporary occupancy rights that allow provisional possession of a land to facilitate the performance of public works (travaux publics).

ONEE has the same compulsory purchase power rights as the State and local authorities and can also, among other easement rights, occupy parts of the public domain that are necessary for the construction of electric energy production, transportation and distribution installations (Article 2 bis, ONEE Dahir).

For private direct transmission lines under Law 13-09, the private operator does not itself hold eminent domain rights. However, since the direct line is developed under a concession agreement with the TSO, the State may exercise its expropriation power for the benefit of the project where it has been declared of public interest.

Land Access Mechanisms

Given the linear nature of transmission infrastructure, servitudes and rights of way constitute the primary mechanism for securing land access, with full expropriation used only in limited cases.

• Public land: Where transmission infrastructure crosses public domain, ONEE obtains occupation rights under the applicable public domain legislation.
• Negotiated acquisition: For private land requiring full acquisition (beyond servitudes), ONEE may negotiate surface rights through private agreements. Where an amicable agreement cannot be reached and the project has been declared of public utility, expropriation proceedings may be initiated.

Compensation

The compensation regime applicable to transmission infrastructure follows the same principles described in 3.4 Eminent Domain, Condemnation and Expropriation Rights to Construct and Operate Generation Facilities for generation projects: servitude indemnities are determined by agreement or by judicial decision, and full expropriation compensation is assessed by the courts on the basis of fair market value.

Exclusive Monopoly

Transmission services are provided on an exclusive monopoly basis by ONEE, the sole TSO. This monopoly derives from the ONEE Dahir and applies across the entire national territory.

Law 13-09 provides for direct transmission lines constructed by private producers under a concession with the TSO where grid capacity is insufficient. The direct line is governed by a concession convention with the TSO; a copy must be notified to ANRE, and the concession is limited in scope and duration. All export operations over the grid are controlled by the TSO. Direct lines do not constitute competing transmission networks; they are project-specific connections that complement and are ultimately integrated into the national transmission grid.

Regulatory Oversight

ANRE does not grant monopoly rights but exercises regulatory oversight, including approval of the transmission investment programme, tariffs (TURT) and the grid code (CRENT), and monitoring of non-discriminatory access.

The Moroccan transmission sector is therefore structured as a centralised, State-controlled monopoly, with limited and strictly regulated exceptions that do not create a competitive transmission market.

Pursuant to Article 15 of Law 48-15, ANRE sets the TURT after consulting the TSO. The tariff covers grid operation, maintenance, development and renewal costs (including a fair return on capital), as well as stranded costs.

Current Tariff Levels

ANRE first published the TURT on 5 February 2024 (Decision No. 02/24), initially setting it at 6.39 cDH/kWh, with the system services tariff (Tarif des Services Systèmes, or TSS) set at 6.35 cDH/kWh. Following adjustments, the TURT was set at 6.85 cDH/kWh and the TSS at 6.81 cDH/kWh effective from 1 March 2026.

Tariff-Setting Methodology

The TURT is set in accordance with ANRE’s tariff methodology (approved 21 December 2022), based on principles of transparency and non-discrimination. It draws on ONEE’s cost-accounting data and a normative cost model, adjusted annually for inflation.

Electricity transmission service in Morocco is provided on an open-access and non-discriminatory basis.

• Legal basis: Law 48-15 guarantees the right of access to the national transmission network and to medium-voltage distribution networks for all users, including international interconnections within the limits of available technical capacity.
• Non-discrimination: The TSO (ONEE) must refrain from any discrimination between users and preserve the confidentiality of commercial information. The same obligation applies to distribution operators.
• Regulator: ANRE approves the transmission network code (CRENT, in force since January 2022), sets the TURT, and resolves disputes between operators and users.
• Access modalities: Access is governed by agreements between the operator and each user, copies of which must be provided to ANRE. Any refusal of access must be justified and notified simultaneously to the applicant and to ANRE.
• Tariffs: On 5 February 2024, ANRE set the TURT at 6.39 cDH/kWh and the TSS at 6.35 cDH/kWh for the period March 2024–February 2027.
• Transmission rights: Where capacity is insufficient, Law 13-09 authorises renewable energy operators to build direct transmission lines under a concession agreement with the entity in charge of the TSO.

The construction and operation of electric distribution facilities in Morocco are governed by the following laws:

• ONEE Dahir, which created ONEE and granted it the public service mission of electricity production, transmission and distribution;
• Law 113-14, which enshrined the management of the electricity distribution public service as a municipality competence;
• Law 48-15, which created ANRE, the authority in charge of ensuring non-discriminatory access to distribution networks, setting the tariffs for use of the distribution grids, and approving grid codes;
• Law 13-09, which defines the “National Grid” and grants independent producers a right of access to the distribution grid subject to available capacity;
• Law 83-21, which created SRMs in charge of the management of the electricity distribution public service; and
• Dahir No 1-61-346 (“Distribution Lines Dahir”), which regulates authorisations, permissions and concessions for the distribution of electric energy, distinguishing between distributions on private land, on public domain under a “permission de voirie”, and under concession.

Other laws allow the construction of distribution lines.

• Law No 21-90 (hydrocarbons) provides that companies holding concession rights under the hydrocarbon code may develop private electricity lines ancillary to their activities.
• Law No 25-90 (subdivisions) provides that developers may build electricity networks, with ownership reverting to the municipal public domain upon completion.
• Law No 19-94 (industrial acceleration zones) provides that the zone operator may create and maintain electricity grids and provide distribution services within the zone.

Storage and Microgrids

There is no standalone legislation on microgrids. Laws No 82-21 and 40-19 introduce a legal basis for energy storage.

Regulatory Process

Unlike generation, the development of electricity distribution facilities is not subject to a centralised licensing regime but depends on the management organisation decided by the relevant municipality.

However, the laws and regulations applicable to the construction of infrastructure generally remain applicable to the development of distribution lines (ie, town planning, environment, etc). Accordingly, the entity in charge of developing electricity distribution facilities notably remains subject to Law No 12-90 and should therefore obtain a building permit for the construction of those facilities.

In addition to the above, although it is outdated and to the best of our knowledge has been largely ignored to date, the development of distribution lines must also theoretically comply with the Distribution Lines Dahir, which provides for the following regimes.

• Permission de voirie (permission of way): Issued by order of the relevant minister, after consultation with telecommunications authorities, provincial authorities and municipal authorities. The permission sets the duration (maximum 50 years), conditions of occupancy, fees and technical requirements.
• Concession: For major projects requiring a declaration of public utility. The process requires a public inquiry (enquête publique), instruction by the relevant ministry, consultation with interested services and authorities, and issuance of a concession act with an associated convention and cahier des charges. Maximum duration: 75 years.

Typical Timelines

No unified statutory timeline applies across all distribution regimes. Timelines depend on environmental approval, land access and urban planning permits. For renewable energy installations connected to distribution under Law 13-09, the technical opinion of the distribution operator must be communicated within one month.

Typical Terms and Conditions

Conditions are primarily defined through contractual arrangements entered into between competent municipalities and their concessionaires in charge of the development and management of distribution networks (SRM management contracts or concessions), supplemented by administrative permissions and regulatory obligations, rather than through a unified licensing framework.

Amendment or Relaxation of Terms and Conditions

Distribution arrangements may be modified only through contractual renegotiation, administrative decision or regulatory adjustment between competent authorities (municipalities) and relevant concessionaires.

• SRM management contracts: May be amended by agreement between the SRM and the service owner. Material modifications may require endorsement by the Ministry of the Interior.
• Permissions: May be revised or revoked by ministerial order. The permission holder has no vested right to the maintenance of original terms; permissions are granted on a precarious basis.
• Concessions: Concession conditions may be revised at defined intervals as stipulated in the convention. Material amendments may require formal administrative approval or modification of the concession act through the same procedure as the original grant.
• Regulatory conditions: The TURD and other regulatory conditions set by ANRE are subject to periodic review by ANRE.

The amendment process reflects the contractual and decentralised nature of the distribution sector.

Eminent Domain and Expropriation

Proponents do not hold eminent domain powers as it remains a State prerogative. However, distribution infrastructure may benefit from statutory servitudes and State-led expropriation mechanisms.

• Concessions under the Distribution Lines Dahir: A concession for electricity distribution carries a declaration of public utility (déclaration d’utilité publique) conferring servitude and expropriation rights over private land, including the right to install supports, anchors and aerial or underground lines on private parcels, subject to compensation.
• SRMs under Law 83-21: SRMs benefit from the right of servitude for water, electricity and sanitation installations under applicable legislation, and the right of expropriation for public utility under applicable law. They also benefit from all rights and privileges available to investors or industrial project developers under prevailing legislation.
• Permissions de voirie: Permissions do not confer rights over private land; access to private land requires the prior consent of landowners.

Land Access and Compensation

Land access mechanisms and compensation for distribution follow the same framework described in 3.4 Eminent Domain, Condemnation and Expropriation Rights to Construct and Operate Generation Facilities and 4.4 Eminent Domain, Condemnation and Expropriation Rights to Construct and Operate Transmission Lines and Associated Facilities: servitudes and rights of way are the primary mechanism, with full expropriation as a last resort. Servitude indemnities are determined by agreement or judicial decision (Distribution Lines Dahir, Articles 15–16), and full expropriation compensation is assessed on the basis of fair market value.

Electricity distribution services are provided on an exclusive basis within defined territories, each operator holding monopoly rights within its designated service area.

Each of the SRMs, private concessionaries and Municipal regies exercise exclusive rights within a defined territorial perimeter described in the corresponding delegated management contracts or management contract entered into with the relevant municipalities, preventing overlapping distribution services.

These exclusive rights arise from a combination of statutory provisions and contractual arrangements, depending on the distribution model.

• Municipal régies: statutory competence of municipalities under local government law, implemented through the 1962 Dahir framework (legislation and municipal decisions).
• Private concessionaires: contractual exclusivity conferred through delegated management agreements under Law No 54-05.
• SRMs: statutory framework established by Law 83-21, implemented through management contracts concluded with the relevant municipality(ies).

The Distribution Lines Dahir specifies that a permission de voirie does not confer any monopoly (Article 8), but a concession creates an exclusive service obligation within the defined area (Articles 7–9). ANRE does not grant monopoly rights but regulates tariffs and ensures non-discrimination.

ANRE has exclusive competence to fix the tariff for the utilisation of medium-voltage distribution networks under Law 48-15. The TURD is periodically adjusted based on cost data provided by distribution operators, using a cost-of-service approach.

Tariff setting is based on the following standard public utility principles.

• Non-discrimination: Distribution operators must abstain from discrimination between users and preserve the confidentiality of commercially sensitive information.
• Transparency: Tariff decisions are published in the Official Gazette and on ANRE’s website.
• Cost-reflectiveness: The TURD methodology reflects the efficient costs of distribution network utilisation based on actual cost data.
• Cross-subsidisation prevention: The accounting separation of ONEE’s activities – approved by ANRE through Decision No. 04/25 – prevents cross-subsidisation between distribution and other segments.

Access to medium-voltage distribution grids is formalised through agreements between the relevant distribution operator and the user, specifying technical connection conditions, commercial terms and dispute resolution procedures. Copies of the corresponding agreements are notified to ANRE. For end-user consumers in the regulated segment, terms of service are defined by applicable tariff regulations and by the distribution management framework.

ANRE’s decisions – including tariff decisions – may theoretically be challenged by annulment action before the competent administrative courts (Article 49 of Law 48-15). Users may submit complaints to ANRE regarding access conditions, tariff application or discriminatory treatment. ANRE arbitrates disputes between users and operators, may sanction operators for non-compliance, and may refer competition distortions to the Competition Council.