124 S. MOORE
million). 13 (Morocco must also import coal for its coal-fired power plants,
which will be discussed in the section “Fuel Switching and Geopolitics”.)
In the absence of the fossil fuel rents on which much of the MENA
region depends, subsidies provided by the Moroccan government’s Caisse
de Compensation for butane, diesel, and gasoline have heavily weighed
on the state’s budget. 14 For example, in 2013, the largest subsidies were
for liquified butane, with consumers paying 35% of the market price,
followed by diesel, with consumers paying 77.3% of the market price,
followed by gasoline, with consumers paying 94.1% of the market price. 15
While butane is cheap, Moroccan consumers pay much more for gasoline
than citizens in nearby oil-rich countries, such as Algeria.
A second major challenge is that demand is rapidly growing due
to population growth, economic development, and the achievement
of universal electrification between the 1990s and 2019. 16 Electricity
demand grew by 5.4% per annum between 2002 and 2016, and the
national utility company forecasts that Morocco’s demand will grow by
4.5–5% per annum through 2030. 17 Water scarcity, which led to protests
in 2017, 18 will also increase demand for costly seawater desalination. The
country’s first desalination facility is under construction in Agadir. 19
Morocco is one of several countries in the MENA region, including
Jordan, Lebanon, and Tunisia, that do not have significant proved
reserves of fossil fuels. This is a strong incentive to develop alternative
energy. In 2015, resource-poor states led the MENA region in renewable
energy development: Morocco and Jordan in renewable energy capacity
and Tunisia in energy efficiency. 20
While utility-scale solar development has received the most attention since 2010, like Jordan, Morocco has considered nuclear power
to compensate for fossil fuel deficiency. In the 1970s, King Hassan II
announced a nuclear power program that would use the naturally occurring uranium in phosphates and laid the groundwork for the development
of a research reactor. Additionally, the national utility company worked
on feasibility studies for nuclear power. 21 In 2007, Morocco’s 2 MW
research reactor, provided with US support, became operational. In 2010,
Morocco and France signed an agreement to develop a nuclear power
plant. Morocco has been working to develop nuclear expertise through
its research reactor and has recently signed nuclear safety agreements
with Canada and Spain. In 2017, Morocco joined a long list of developing countries that have signed nuclear power development MOUs with
million). 13 (Morocco must also import coal for its coal-fired power plants,
which will be discussed in the section “Fuel Switching and Geopolitics”.)
In the absence of the fossil fuel rents on which much of the MENA
region depends, subsidies provided by the Moroccan government’s Caisse
de Compensation for butane, diesel, and gasoline have heavily weighed
on the state’s budget. 14 For example, in 2013, the largest subsidies were
for liquified butane, with consumers paying 35% of the market price,
followed by diesel, with consumers paying 77.3% of the market price,
followed by gasoline, with consumers paying 94.1% of the market price. 15
While butane is cheap, Moroccan consumers pay much more for gasoline
than citizens in nearby oil-rich countries, such as Algeria.
A second major challenge is that demand is rapidly growing due
to population growth, economic development, and the achievement
of universal electrification between the 1990s and 2019. 16 Electricity
demand grew by 5.4% per annum between 2002 and 2016, and the
national utility company forecasts that Morocco’s demand will grow by
4.5–5% per annum through 2030. 17 Water scarcity, which led to protests
in 2017, 18 will also increase demand for costly seawater desalination. The
country’s first desalination facility is under construction in Agadir. 19
Morocco is one of several countries in the MENA region, including
Jordan, Lebanon, and Tunisia, that do not have significant proved
reserves of fossil fuels. This is a strong incentive to develop alternative
energy. In 2015, resource-poor states led the MENA region in renewable
energy development: Morocco and Jordan in renewable energy capacity
and Tunisia in energy efficiency. 20
While utility-scale solar development has received the most attention since 2010, like Jordan, Morocco has considered nuclear power
to compensate for fossil fuel deficiency. In the 1970s, King Hassan II
announced a nuclear power program that would use the naturally occurring uranium in phosphates and laid the groundwork for the development
of a research reactor. Additionally, the national utility company worked
on feasibility studies for nuclear power. 21 In 2007, Morocco’s 2 MW
research reactor, provided with US support, became operational. In 2010,
Morocco and France signed an agreement to develop a nuclear power
plant. Morocco has been working to develop nuclear expertise through
its research reactor and has recently signed nuclear safety agreements
with Canada and Spain. In 2017, Morocco joined a long list of developing countries that have signed nuclear power development MOUs with