Power Generation, Transmission and Distribution 2026

MOROCCO Law and Practice Contributed by: Wacef Bentaibi, Benoit Pape, Chaimaâ Bouhami and Maxime Masurier, Gide Loyrette Nouel

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, con- tributing 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 sup- plementary supply and system flexibility (see 2.2 Elec- tricity Imports and Exports ). In summary, Morocco’s supply mix remains struc- turally dependent on coal for baseload generation, while renewable energy capacity is expanding rapidly towards the national target of 52% of installed capac- ity by 2030. 2.4 Market Concentration Limits • 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 genera- tion (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 substitut- able goods or services. • Review process and standstill: The Competition Council must rule within 60 days (extended by 20 days for commitments). It may authorise, author- ise subject to conditions, or prohibit. An in-depth review of up to 90 days may be opened. No con- centration may be completed before the Council’s decision unless a derogation is granted. • Sanctions: Failure to notify may result in a pecuni- ary 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 Competi- tion Council any practice in the electricity sector likely to constitute a restriction on competition. 2.5 Surveillance to Detect Anti-Competitive Behaviour Market Context Morocco does not operate a competitive wholesale electricity market. However, anti-competitive behav- iour surveillance is relevant to the open market seg- ment under Laws 13-09 and 82-21, to grid access

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