MOROCCO Law and Practice Contributed by: Wacef Bentaibi, Benoit Pape, Chaimaâ Bouhami and Maxime Masurier, Gide Loyrette Nouel
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 dis- tribution. The sector is currently undergoing signifi- cant 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 empow- ered 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 transmis- sion 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 pur- chase electricity directly from the relevant SRM or, as the case may be, from private IPPs. 1.3 Foreign Investment Review Process 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 for- eign 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 tri- bunals including under the International Centre for Settlement of Investment Disputes (ICSID) Conven- tion. Sector-Specific Authorisations In addition to the general investment framework, the construction and operation of power generation pro- jects require sector-specific administrative authorisa- tions. Under Law 13-09, projects of 2 MW or above are sub- ject to a two-stage authorisation regime – a construc- tion authorisation and then an operation authorisa- tion – 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 per- sons 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 installa- tions of 5 MW or more. Any modification requires prior approval (Article 9). These sector-specific authorisations apply concur- rently with the other permitting and approval regimes deriving from applicable law (eg, environment, town
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