Morocco's Electricity Law Reform: Proposals Encourage Individual Production and Sale of Surplus

An analytical report prepared by the “Solidarity and Cooperation Space in the Eastern Region” organization, in partnership with Greenpeace Middle East and North Africa, called for amending Law No. 82.21 concerning self-generated electricity production. The report noted that the current text “regulates self-consumption but does not provide sufficient conditions to transform households, farmers, and small enterprises into electricity producers and suppliers.”

The report, a copy of which was obtained by Hespress, pointed out that Morocco imports nearly 90 percent of its energy needs, making it highly vulnerable to fluctuations in global markets. In 2022, the cost of energy imports exceeded 20 percent of the country’s total imports, worsening the trade deficit and depleting foreign exchange reserves. The state also bears significant financial burdens related to butane gas subsidies. In contrast, renewable energy sources accounted for 45 percent of installed electrical capacity in 2024 and contributed approximately 27 percent of total generation. Morocco has committed to reaching 52 percent by 2030.

Sales and Grid Connection Constraints

Law 82.21 was issued in February 2023, defining the rights and obligations of self-consumers and opening the door for their grid connection. However, the report noted that Article 1 limits the law’s objective to the “regulation” of self-consumption, whereas the next phase requires “adopting the promotion of its spread as an explicit goal.”

Article 12 was highlighted as the most significant restriction, as it permits the sale of no more than 20 percent of annual production to the grid operator. Consequently, the grid may benefit from clean electricity without compensating the owner for the full amount injected.

According to the report titled “Fair Energy Transition in Morocco: Pathways to Reform Law 82.21 to Promote Decentralized Renewable Energy Production,” the impact of this cap is further exacerbated by the absence of a clear tariff for purchasing surplus energy on low-voltage grids. This makes it difficult for households and businesses to make investment decisions or secure financing.

The same document warned that “the 11-kilowatt threshold, which separates the declaration and approval systems, remains low for multi-apartment residential buildings or farms operating cooling rooms.” It added that dedicating more than a quarter of the law’s articles to violations and penalties “may suggest a focus on deterrence rather than building trust.”

It also raised the “potential for conflicts of interest” when the distribution grid operator is responsible for reviewing connection applications, despite the fact that its sales are affected by the growth of self-consumption.

Package of Reforms

In response to this, the report proposed “amending the purpose of the law and recognizing the consumer as a potential producer and supplier.”

In this context, it called for the removal of the 20 percent cap, while guaranteeing compensation for the full amount of electricity injected into the grid, with grid stability needs to be addressed through clear technical rules. It also demanded the adoption of a fair and transparent tariff that ensures reasonable returns for producers while taking grid costs into account, and raising the 11-kilowatt threshold to a level that aligns with practical realities.

The report also proposed “standardizing procedures and reducing the required documentation, and treating the absence of a response within the deadline as implicit consent. It recommended assigning the processing of applications to an entity independent from distribution network operators, or subjecting it to independent regulatory oversight.”

It also called for “reducing penalties, moving production curtailment provisions from the penalties section to technical regulations, and completing the regulatory texts; including the distribution network code, storage rules, and the calculation of electricity produced, consumed, and injected.”

Regarding “smart meters,” the report’s authors, including agricultural engineer and North Morocco Environmental Coalition coordinator Mohamed Ben Atta, demanded “limiting production disconnections to cases necessary for grid safety, while protecting personal data.”

The report concluded that, when implemented together, these reforms would shift the law from a framework regulating self-consumption to an instrument that incentivizes the generation and sale of renewable electricity. It noted that this would reduce household electricity bills and pumping and cooling costs for farmers and cooperatives, provide banks with financing products, create jobs in installation, maintenance, and engineering, and reduce electricity transmission losses.