Assessing the energy system impacts of Morocco's NDC and low-emission pathways

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Assessing the energy system impacts of Morocco's NDC and low-emission pathways
The views expressed in this
                                                                           document are informal and do
                                                                            not necessarily reflect the UK
                                                                            government’s official policies.

Assessing the energy system impacts of Morocco's NDC
and low-emission pathways
Panagiotis Fragkos

 Key Messages
 •   Morocco has set ambitious NDC targets for 2030, but current
     climate policies need strengthening to meet NDCs and long-
     term low-emission strategies
 •   The energy system needs to be transformed by expansion of RE
     investment, higher levels of electricity use in transport, indus-
     try, and buildings, and a drive to use energy more efficiently
 •   The low-carbon transition can boost Morocco’s economy, attract
     investment, create new jobs, and reduce energy imports

                                       higher commitment to climate               transformation with rapid up-
Introduction                           policy in the country. The NDC             scaling of renewable technolo-
In the last decade, Morocco has        ambition levels are ranked by              gies combined with elimination
positioned itself at the forefront     the international community as             of coal-fired plants. Implement-
of the clean energy transition,        among the highest globally and             ing the Moroccan NDC can pave
through the ambitious emission         are aligned with the mitigation            the way towards the structural
pledges presented in COP21 as          objectives of the Paris Agree-             transformations required to
part of Morocco NDC (Nationally        ment [1]. Moroccan institutions            ensure compatibility with the
Determined Contribution), the          have also built significant                Paris Agreement. Morocco has
announcement of a 52% renew-           knowledge of innovative renew-             vast       renewable       energy
able energy target in 2030 and         able energy financing instru-              resources that can be exploited
the launching of the world’s           ments, especially for solar and            to replace fossil fuel use in and
largest    concentrating     solar     wind projects. Despite recent              beyond the power sector, and
power (CSP) plant. Under the           policy developments, Morocco’s             thus the policy ambition can fur-
NDC,     submitted     in   2016,      energy consumption is domi-                ther increase focus on expan-
Morocco committed to uncondi-          nated by fossil fuels (which are           sion of renewable energy com-
tionally reduce its GHG emis-          imported due to the lack of do-            bined with storage, acceleration
sions by 17% and conditionally         mestic hydrocarbon resources),             of energy efficiency, and electri-
by 42%, below business as              while the expansion of coal-fired          fication of energy services. As
usual emissions by 2030. The           generation raises new concerns             Morocco’s economy depends
NDC strategy covers all sectors        for rapidly increasing emissions.          heavily on hydrocarbon imports,
of the economy and relies                                                         opportunities abound to reduce
heavily on energy sector trans-        The briefing provides a quanti-            its energy import bill by devel-
formation towards more sus-            tative model-based analysis of             oping     domestic     renewable
tainable energy sources.               the energy system and socio-               energy and reducing fossil fuel
                                       technical and financial implica-           consumption.      Our    research
                                       tions of implementing the                  highlights the key challenges
There is strong support of                                                        and opportunities for Morocco’s
                                       Morocco NDC targets by 2030
climate policy at a high level.                                                   transition and provides key
                                       and low-emission transition by
Morocco has hosted the UNFCCC                                                     policy-relevant messages and
                                       2050. The NDC implementation
Conference of Parties twice, in                                                   recommendations on how to im-
                                       is based on electricity sector
2001 and 2016, leading to a

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Assessing the energy system impacts of Morocco's NDC and low-emission pathways
ENERGY SYSTEM IMPACTS OF MOROCCO'S NDC

plement its NDC for 2030 and          ing standards of living, and           uptake of more efficient energy
even raise its climate ambition       limited climate action [1, 6].         carriers in end-use sectors, the
towards a long-term low-              Transport and electricity pro-         removal of fossil fuel subsidies,
emission development.                 duction remain the highest             energy savings in buildings
                                      carbon emitting sectors, ac-           (energy labelling, energy effi-
Study Design                          counting for 75% of total CO2          ciency cook-stove program,
As the energy and transport           emissions by 2050.                     low-consumption lamps, effi-
sectors represent more than                                                  cient    building    envelopes),
90% of Morocco’s CO2 emissions        Key Results                            transport improvements (up-
and Morocco’s mitigation goals        Current policies and plans as          take of EVs, taxi renewal pro-
rely in large part on the energy      included in BAU need strength-         gramme, public infrastructure in
sector transformation [2], the        ening to ensure that Morocco           urban      centres),   efficiency
policy brief analyses future          meets its NDC targets for 2030         standards in industries, and the
energy system development un-         (Figure 1). Our analysis shows         uptake of efficient appliances,
der alternative climate policy        that the policy ambition can be        equipment, and cars.
scenarios. In line with Morocco’s     raised in Morocco, facilitating        Implementing the Moroccan
NDC, the study considers a            the uptake of renewable energy         NDC can pave the way towards
business-as-usual (BAU) sce-          and energy efficiency and the          the structural systemic transfor-
nario     that   includes    only     phase out of coal-fired power          mations required to ensure
currently implemented policies        plants.                                compatibility with Paris Agree-
and does not consider the                                                    ment goals. As Morocco has
measures included in country’s        The cost-efficient implementa-
                                      tion of Moroccan NDC targets is        vast renewable resources that
NDC. The study analyses the                                                  can be exploited to replace fossil
impacts, costs, and benefits for      based on electricity sector
                                      transformation with rapid up-          fuel use in and beyond the
Morocco to achieve its (condi-                                               power sector, the climate policy
tional and unconditional) NDC         scaling of renewable technolo-
                                      gies (solar PV, CSP, and wind          ambition can further increase,
targets for 2030, and also quan-                                             focusing on electricity sector re-
tifies long-term low-emission         power) combined with elimina-
                                      tion of coal and oil-fired power       structuring with high expansion
pathways for Morocco, in line                                                of renewable energy and accel-
with mitigation pathways of the       plants.     Gas-fired    Combined
                                      Cycles support the large-scale         eration of efficiency improve-
IPCC Special Report on 1.5oC                                                 ments in all demand sectors
[3].                                  deployment of variable renewa-
                                      bles and provide an important          (Figure 2). As power genera-
The climate policy scenarios are      flexibility option to the system.      tion decarbonizes well before
developed with the comprehen-         Accelerated energy efficiency          2050, the increased electrifica-
sive Middle East and North            improvements resulting directly        tion of energy services becomes
Africa Energy Demand and Sup-         in lower emissions are also a          an     increasingly     important
ply (MENA-EDS) model [4–5].           major pillar to meet NDC               strategy to reduce emissions,
MENA-EDS is a technologically         targets; this is facilitated by the    e.g., through uptake of electric
rich energy system model cap-                                                vehicles that account for 50% of
turing in detail the complex
interactions between energy de-
mand and supply. It provides
future projections on energy
consumption by sector and fuel,
power generation mix by tech-
nology, energy price formation,
policy instruments, required
investment, and CO2 emissions
from energy combustion by sec-
tor [5].

With currently implemented pol-
icy measures, CO2 emissions
from energy use in BAU scenario
are projected to constantly
increase as a result of high GDP
and energy demand growth, ris-

                                         Figure 1: CO2 energy-related emissions over 2010–2030 in Morocco in
                                         BAU and NDC scenarios

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Assessing the energy system impacts of Morocco's NDC and low-emission pathways
ENERGY SYSTEM IMPACTS OF MOROCCO'S NDC

passenger cars in 2050. The
rapid upscaling of mature,
market-ready technologies (i.e.,
solar PV, wind) to more than
with the deployment of new
options, (i.e., storage batteries,
electric vehicles, carbon capture
and storage, advanced biofuels)
can significantly reduce CO2
emissions close to net zero by
2050. But this requires an up-
scaling of the NDC effort and
ambitious climate policy. Re-
newable energy deployment can
contribute to economic develop-
ment in Morocco, attract invest-
ment, and boost the industrial
sector.
                                                   Figure 2: Energy system indicators in alternative climate policy scenarios
As Morocco’s economy depends                       in Morocco in 2050
heavily on hydrocarbon imports,
opportunities      abound      to                                                           exports of RE-based electricity
improve its energy import                      Conclusions and                              and the reduced fossil fuel im-
dependence       and     enhance               Policy                                       ports bring important growth
energy supply security by devel-               Recommendations                              opportunities for Morocco.
oping     domestic     renewable               With a young and growing pop-
energy and reducing hydro-                                                                  Morocco has only renewable
                                               ulation and plans to continue
carbon consumption. Morocco                                                                 energy targets for the electricity
                                               developing and diversifying the
can benefit from reducing GHG                                                               sector. With a view to meeting
                                               economy, a committed low-
emissions as production facili-                                                             SDG7 and increasing the share
                                               carbon energy strategy for the
ties of green industrial products                                                           of renewable energy in primary
                                               medium and long-term can be
(e.g., solar panels, wind tur-                                                              energy mix, Morocco is encour-
                                               developed largely based on re-
bines) are already in place in                                                              aged to set targets and policy
                                               newable energy, electrification,
Morocco and their contribution                                                              measures for the use of modern
                                               and energy efficiency. Climate
in Moroccan GDP would increase                                                              renewables in residential and
                                               policy and renewable energy
creating new employment op-                                                                 transport sectors. This will
                                               deployment contribute to the
portunities.                                                                                strongly promote the reduction
                                               development of the economy,
                                                                                            of fossil fuel use and emissions
                                               create new, quality jobs, and
                                                                                            across the economy, which
                                               boost investment and the indus-
                                                                                            comes with co-benefits in terms
                                               trial sector of Morocco. The
                                                                                            of reduced air pollution and
                                               domestic    manufacturing     of
                                                                                            energy imports and stimulating
                                               clean energy technologies, the
                                                                                            investment.

                                                                     [4] Fragkos P., Kouvaritakis N., Capros P, 2013, Model-based
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                                                                     [-] International Energy Agency, Energy Policies beyond IEA
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ENERGY SYSTEM IMPACTS OF MOROCCO'S NDC

Notes
Climate Compatible Growth (CCG) programme:                Acknowledgements:
CCG is funded by the UK’s Foreign Development and         The research leading to this study has received funding
Commonwealth Office (FCDO) to support investment in       from the European Union Horizon 2020 research and
sustainable energy and transport systems to meet          innovation program under grant agreement No
development priorities in the Global South                101003866 (NDC ASPECTS)

                                                          Author Affiliation:
                                                          E3-Modelling, Athens

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