Reforming Morocco's Electricity Production Law for a Sustainable Future
On November 2, 2026, a comprehensive analytical report published by the "Solidarity and Cooperation Space of the Eastern Region" in collaboration with "Greenpeace Middle East and North Africa" has called for substantial amendments to Law No. 82.21, which governs self-generated electricity production in Morocco. This proposed change aims to empower households, farmers, and small enterprises to generate renewable electricity and sell surplus energy back to the grid, moving beyond the current framework that only regulates self-consumption. The report highlights that the existing legislation fails to provide sufficient incentives and conditions for consumers to become producers and suppliers of electricity, despite the potential economic and environmental benefits that such a transition could yield, including reductions in energy bills, decreased reliance on imports, and enhanced supply security.
As it stands, Morocco is heavily reliant on imports to meet approximately 90% of its energy needs, exposing the nation to fluctuations in global markets. In 2022, energy import bills accounted for over 20% of the country’s total imports, which has increased pressure on the trade balance and foreign currency reserves, in addition to the financial burdens associated with butane gas subsidies. In contrast, renewable energy sources are projected to constitute about 45% of Morocco's installed electrical capacity by 2024, contributing roughly 27% to the total electricity production. The nation aims to elevate the share of renewable energies to 52% by 2030.
Legal Barriers to Selling Excess Electricity
The report, titled "A Just Energy Transition in Morocco: Pathways for Reforming Law 82.21 to Enhance Decentralized Renewable Energy Production," points out that while the law, enacted in February 2023, established a framework for regulating self-generated electricity, it does not explicitly adopt the objective of promoting the widespread adoption of this model. The report identifies Article 12 as a significant barrier to expanding self-production; it limits the sale of surplus electricity to the grid operator to only 20% of annual production, which restricts producers from economically benefiting from the excess they do not consume, despite the possibility of injecting it into the grid for utilization.
This issue is compounded by the absence of a clear pricing structure for purchasing surplus electricity on low-voltage networks, undermining the investment viability of residential and commercial solar energy projects, thus making it more challenging for households and small businesses to secure financing. The report further criticizes the threshold of 11 kW that differentiates between the declaration and approval systems, deeming it inadequate for certain establishments, such as multi-apartment buildings and farms that utilize cooling and storage systems.
Moreover, the report suggests that the heavy focus on violations and penalties within the law may reflect a prioritization of punitive measures rather than fostering trust and creating an encouraging environment for investment in self-production. It also warns of potential conflicts of interest when the grid operator assesses connection requests, as their commercial interests may be adversely affected by the expansion of self-generated electricity production, leading to a clash between their interests and those of new producers.
To address these discrepancies, the report proposes a fundamental alteration of the law’s primary objective, expanding its scope to recognize consumers as potential producers and suppliers of electricity rather than limiting it to self-consumption regulation. Key recommendations include abolishing the 20% cap on annual production sales, allowing producers to be compensated for all electricity they inject into the grid, and establishing clear technical standards that ensure network stability and operational safety. Additionally, it calls for the adoption of a fair and transparent pricing mechanism for purchasing excess electricity that provides reasonable economic returns to producers while considering the costs of operating the grid.
Other proposed measures include raising the 11 kW threshold to accommodate the needs of residential, agricultural, and commercial establishments, simplifying approval processes, reducing documentation requirements, and implementing a principle of tacit approval if no response is received within specified timeframes. The report also recommends delegating the assessment of connection requests to an independent body, separating it from grid operators, or subjecting these processes to independent regulatory oversight.
In terms of legislative and regulatory reforms, it advocates for reducing fines, transferring some provisions related to production restrictions from the penalties section to technical regulations, and completing regulatory texts, including distribution network codes, electricity storage rules, and mechanisms for calculating produced, consumed, and injected energy into the grid.
The report discusses the role of smart meters in enhancing the self-production framework, urging for production disconnections to be limited to necessary circumstances to ensure network safety, while also safeguarding the personal data of consumers and producers. These recommendations hold particular significance given the anticipated expansion of decentralized solar energy systems, as smart meters can accurately measure consumed and surplus electricity, facilitating financial settlements between producers and network operators.
In conclusion, the implementation of the proposed reform package could transform Law No. 82.21 into a more effective tool for promoting renewable energy deployment, rather than simply regulating self-consumption. Such reforms are expected to lower electricity bills for households, reduce pumping and cooling costs for farmers and cooperatives, open avenues for banks to develop financing products tailored for self-production projects, create job opportunities in the installation, maintenance, and engineering of renewable energy systems, and minimize electricity transmission losses by enhancing production close to consumption sites.
As reported by solarabic.com.
