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Wednesday, 21 December 2022

Morocco passes law supporting electricity decentralization

Morocco makes decentralized electricity production law official: Individuals and businesses in Morocco will be allowed to generate, store, and sell their own electricity from renewables after Morocco’s House of Representatives unanimously approved a new bill on electricity self-production, according to a statement. While the bill aims to regulate electricity production for self-consumption, it also touches upon the possibility of selling excess electricity to the grid. The legislation — which was approved by the Moroccan Senate in November 2021 — became law yesterday.

What does the law entail? The bill will help regulate decentralized electricity generation, creating a framework that would facilitate the storage, purchase, and sale of energy produced by independent power producers to distribution network operators, the statement notes. The bill also includes a provision on upgrading the country’s electricity grid to enable the transfer of electricity between generators and operators.

What the law is targeting: The bill aims to resolve the legal vacuum on unregulated self-production plants, the House said. The country also wants to shore up its energy needs in anticipation of increased demand, while also ensuring that it meets climate targets. While Morocco has not set a carbon neutrality target, it has committed to an unconditional emissions reduction of 18.3% below business as usual (BAU) scenarios by 2030, and aims to push emissions 45% below BAU by 2030 if it gains international support for decarbonization, the climate action tracker notes citing the country’s latest nationally determined contribution.

Reducing energy consumption: The kingdom also wants to reduce energy consumption by 20% compared to a BAU scenario in 2030 and have renewable energy account for 52% of its installed electric capacity by 2030.

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