130 S. MOORE
Fuel Oil and Natural Gas
Dependence on fuel oil/diesel will be reduced owing to Morocco’s
energy strategy, including, but not limited to, renewable energy. This
change is an important reason for Morocco’s renewable energy development because, without the oil wealth of many of the nation-states in the
region, dependence on fuel oil subjects the state to price volatility in international oil markets. The Moroccan government subsidizes fuel oil used
for electricity production; prior to the beginning of the energy transition,
this resulted in a 15% subsidy on the retail price per kWh. 44 Moroccan
industry is heavily reliant on petroleum coke, constituting 68% of industrial consumption in 2017. 45 Several of Morocco’s new wind plants now
power cement production. In 2010, Morocco replaced a fuel-oil power
plant in Kenitra with turbines that run both on natural gas and fuel oil.
Most of the installed capacity in Western Sahara comes from diesel-fired
power plants, and a new 22 MW diesel-fired power plant is being built in
Dakhla.
Morocco has two combined cycle gas turbine (CCGT) plants: the
384 MW Tahaddart plant built in 2005 and the 452 MW Ain Beni
Mathar plant integrated with 20 MW of CSP built in 2009. 46 By 2017,
natural gas accounted for 18% of total energy consumption, or 5.9 TWh—
much lower than the global average. 47 Natural gas can provide firm power
on demand to back up intermittent renewable energy sources. However,
Morocco’s natural gas needs are intertwined with complex geopolitics.
Currently, Morocco imports 94% of its natural gas from Algeria. 48 In
2016, overall exports from Algeria to Morocco totaled $499 million
dollars, 97% of which was hydrocarbons. 49 Natural gas is imported via the
Maghreb-Europe pipeline, which runs from Algeria through Morocco to
Spain and Portugal. 50 It was built in 1996 with a capacity of 10 billion
cubic meters (bcm). 51 ONEE purchases 0.6 bcm of natural gas from the
pipeline, and Morocco receives 0.5 bcm as a transit fee. 52 Morocco and
Algeria have extended their contract for the pipeline through 2021.
Algeria is the world’s sixth-largest natural gas exporter, with the
tenth-largest proved reserves of natural gas and the third-largest proved
reserves of shale gas. 53 Relations between Morocco and Algeria are poor
because of disputes over their border, terrorism, and, most significantly,
Western Sahara. 54 According to Larramendi, the Moroccan government
sees Western Sahara as a bilateral dispute with the Algerian government,
which provides material support to the Sahrawi independence movement.
Fuel Oil and Natural Gas
Dependence on fuel oil/diesel will be reduced owing to Morocco’s
energy strategy, including, but not limited to, renewable energy. This
change is an important reason for Morocco’s renewable energy development because, without the oil wealth of many of the nation-states in the
region, dependence on fuel oil subjects the state to price volatility in international oil markets. The Moroccan government subsidizes fuel oil used
for electricity production; prior to the beginning of the energy transition,
this resulted in a 15% subsidy on the retail price per kWh. 44 Moroccan
industry is heavily reliant on petroleum coke, constituting 68% of industrial consumption in 2017. 45 Several of Morocco’s new wind plants now
power cement production. In 2010, Morocco replaced a fuel-oil power
plant in Kenitra with turbines that run both on natural gas and fuel oil.
Most of the installed capacity in Western Sahara comes from diesel-fired
power plants, and a new 22 MW diesel-fired power plant is being built in
Dakhla.
Morocco has two combined cycle gas turbine (CCGT) plants: the
384 MW Tahaddart plant built in 2005 and the 452 MW Ain Beni
Mathar plant integrated with 20 MW of CSP built in 2009. 46 By 2017,
natural gas accounted for 18% of total energy consumption, or 5.9 TWh—
much lower than the global average. 47 Natural gas can provide firm power
on demand to back up intermittent renewable energy sources. However,
Morocco’s natural gas needs are intertwined with complex geopolitics.
Currently, Morocco imports 94% of its natural gas from Algeria. 48 In
2016, overall exports from Algeria to Morocco totaled $499 million
dollars, 97% of which was hydrocarbons. 49 Natural gas is imported via the
Maghreb-Europe pipeline, which runs from Algeria through Morocco to
Spain and Portugal. 50 It was built in 1996 with a capacity of 10 billion
cubic meters (bcm). 51 ONEE purchases 0.6 bcm of natural gas from the
pipeline, and Morocco receives 0.5 bcm as a transit fee. 52 Morocco and
Algeria have extended their contract for the pipeline through 2021.
Algeria is the world’s sixth-largest natural gas exporter, with the
tenth-largest proved reserves of natural gas and the third-largest proved
reserves of shale gas. 53 Relations between Morocco and Algeria are poor
because of disputes over their border, terrorism, and, most significantly,
Western Sahara. 54 According to Larramendi, the Moroccan government
sees Western Sahara as a bilateral dispute with the Algerian government,
which provides material support to the Sahrawi independence movement.