This project evaluates climate and energy policies in non-EU countries and provides recommendations for policy opportunities in the country under study. Following a framework methodology developed by Ecofys, Morocco's energy and climate policy was evaluated and opportunities to drive the implementation of renewable energy and energy efficiency are identified. Policies covered: - energy efficiency - renewable energy sources - low carbon Sectors covered: - Energy supply - Industry - Buildings - Transport A similar policy evaluation exists for Ukraine.

1. Country profile of Morocco
Evaluation of energy and climate policies
compared to EU
By: Erika de Visser, Luis Janeiro, Yvonne de Bie, Niklas
Höhne
May 2013

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Table of content
> Chapter 1 Introduction Slide 3
> Chapter 2 Methodology Slides 4-5
> Chapter 3 Results Slides 6 - 18
> Chapter 4 Conclusions Slides 19 - 28
> References Slides 29 - 30
> Annex 1 Overview of EU policies Slide 31 - 32
> Annex 2 Conclusions and recommendations per policy area
Slides 32 - 36
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Chapter 1: Introduction
Goal of the project:
> to evaluate climate and energy policies in countries outside of the EU and
to provide recommendations for policy opportunities for the
transition to a sustainable energy supply in the respective country.
Deliverables:
> to develop a methodology to evaluate energy and climate policies in non
EU countries.
> to apply the methodology to two non-European countries, namely
Morocco and Ukraine.

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Chapter 2: Methodology
Segments
The analysis is categorized in key economic sectors (rows), and policy
areas (columns), which together determine the individual segments
(dotted lines) of the analysis:
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General energy and climate strategy
Energy supply
Industry
Buildings
Transport
EnergyEfficiency
Renewableenergy
Lowcarbonstrategies

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Chapter 2: Methodology
Benchmark and scores
Benchmark:
> The (technical) mitigation potential is measured, which means the extent the
implemented policy packages in each country are able to exploit the technical
potential.
> For each segment is identified which policies apply. To measure the effectiveness
of policy packages, both indicators that have positive impact (incentives) and
negative impact (barriers) are defined, which together form a coherent and
consistent strategy to achieve a long-term low-carbon future.
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Barriers
-4 -3 -2 -1 0
Incentives
0 1 2 3 4
Scores:
> For each segment a segment score for the incentives on
a scale of 0 to 4 is given as well for the barriers (-4 to 0)
with a 4 for incentives meaning ‘fully effective at
capturing mitigation potential in that segment’ and a -4
for barriers meaning ‘prevents policies from achieving
reductions for this segment’.

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Chapter 3: Results
Overview of Policies
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Energy Efficiency Renewables Low Carbon
ENERGYSUPPLY
• There is no relevant policy instrument in
place to incentivise /support energy
efficiency in energy supply.
• Fuels for electricity production highly
subsidised.
I B • Ambitious targets for 2020
• Public investments and tendering
process. No fiscal incentives such as tax
or duty/exemptions on equipment.
• Low guarantee of regulatory stability.
I B
• No relevant policies in place
I
INDUSTRY
• There has been public funding for a
limited number of energy audits.
• Fuels for industrial use highly subsidised.
I B
• Introduction of a net metering scheme is
under discussion.
• Fuels for industrial use highly subsidised.
I B
• No relevant policies in place
I
BUILDINGS
• Introduction of a building code is under
discussion
• Fiscal incentives for the purchase of
efficient light bulbs
• Fuels are highly subsidised.
I B • Programme 'Shemsi' for solar water
heaters.
• Introduction of a building code is under
discussion.
• Fuels are highly subsidised.
I B
• No relevant policies in place
TRANSPORT
• No relevant policies in place
• Fuels for transport are highly subsidised.
I B
• No relevant policies in place
• Fuels for transport are highly
subsidised.
I B
• No relevant policies in place
I

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Chapter 3: Results
General energy and climate policy
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EFFICIENCY/RENEWABLES/LOW-CARBON
Assessment
Score
Morocco
Score
EU
GENERAL CLIMATE
STRATEGY
• There is a renewable energy and energy efficiency target,
but not a GHG target.
• Targets are set for 2020 and 2030, but not for 2050.
However, the National Energy Strategy does not provide a
comprehensive framework to achieve the targets.
• There is more attention for renewables than for energy
efficiency, while energy use is expected to rise with 6-8%
yearly.

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Chapter 3: Results
Energy efficiency in electricity and heat supply
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ENERGY EFFICIENCY
Assessment
Score
Morocco
Score
EU
ELECTRICITY AND
HEAT SUPPLY
Incentives • There are a few incentives to improve the energy
efficiency of fossil fuel power plants. One is a fund from
FED (Fonds de Développement Energétique) covering
the rehabilitation of assets of ONE (Office National de
l’Electricité).
• In 2009 ONE has submitted a grant proposal to the
African development bank asking for more than US$ 120
million to finance a major work-over of the national
energy distribution network. The work-over is expected
to reduce transmission losses from 4,7% to 3.5%.
Barriers
• Fuel oil for electricity production is highly subsidized.
Price is in the order of 2600 DH/tonne while prices of
fuel for industrial uses - which are already subsidized -
are at 4666 DH/tonne.

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Chapter 3: Results
Renewable energy in electricity and heat supply
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RENEWABLE ENERGY
Assessment
Score
Morocco
Score
EU
ELECTRICITY
AND HEAT
SUPPLY
Incentives
• By 2020, Morocco aims to produce 20% of all electricity from renewable energy
sources. To achieve this objective, the country seeks to have a total installed
renewable energy capacity of 6 GW (or 42% of the total installed capacity).
• The 20%-/42%-target by 2020 is ambitious, particularly considering the current
share of renewables, which predominantly consists of long existing hydropower
plants.
• SIE (Societé d'Investissement Energétique) was created in 2009 with a fund to
support renewables.
• The main policy instrument is public tendering of large-scale wind and solar
power projects. No fiscal incentives such as tax or duty/exemptions on
equipment exist.
Barriers
• Overall attractiveness for domestic and foreign renewable energy investors is
low, especially due to the absence of an effective regulatory support scheme.
• Grid connection agreement has to be negotiated with ONE on a project basis,
creating big uncertainty about the connection costs.
• Another important technical barrier to renewable energy deployment in Morocco
is the grid infrastructure. While in the northern part of the country the
construction of wind power plants has triggered a technical adaption of the grid,
the southern part is still not prepared for the integration of fluctuating renewable
energy power.

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Chapter 3: results
Low carbon technologies in electricity and heat supply
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LOW CARBON
Assessment
Score
Morocco
Score
EU
ELECTRICITY
AND HEAT
SUPPLY
Incentives
• No policy instruments to support fuel switch to low-
carbon fuels in place.
• No policy instruments to support CCS in place.
• Nuclear power is discussed as a long-term option.
Barriers
N.A N.A. N.A.

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Chapter 3: Results
Energy efficiency in industry
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ENERGY EFFICIENCY
Assessment
Score
Morocco
Score
EU
INDUSTRY
Incentives
• Morocco is currently elaborating a National Program of Energy Efficiency in
Industry, with the aim of developing the institutional and regulatory framework,
provide support for energy audits and investments and training of professionals.
• The program’s objectives (2014-2020) are:
• Energy savings: 600.000 TOE in 2014, 1.950.245 TOE-eq in 2020
• Carbon emission avoidance: 2 MtCO2-eq (2014), 7.5 MtCO2-eq (2020)
• Companies to be audited: 360 (2014), 1855 (2020)
• Some energy audits have been carried out with the financial support of the African
Development Bank. The electric and thermal energy consumption characterization
in 3 industrial zones (Casablanca, Agadir and Tanger) is in process.
• Despite these developments no policy instrument providing sufficient incentive for
energy efficiency investments in industry (e.g. support schemes, voluntary
agreements, emissions trading, energy and/or CO2 taxes) is in place.
Barriers
• Fuel oil for industrial use is subsidized. Even after the latest price raise in June
2012, the government subsidy is in the range of 2000 DH/tonne. Regulated price
is 4666 DH/tonne.

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Chapter 3: Results
Renewable energy in industry
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RENEWABLE ENERGY
Assessment
Score
Morocco
Score
EU
INDUSTRY
Incentives
• The option for RE auto production is given under the
Renewable Energy Development Law 13.09 of 2009.
• No specific policy instruments to incentivize an increase of
RES in industry have been found.
• Introduction of a net metering scheme is under discussion.
Barriers
• Fuel oil for industrial use is highly subsidised. Even after the
latest price raise in June 2012, the government subsidy is in
the range of 2000 DH/tonne. Regulated price is 4666
DH/tonne.

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Chapter 3: Results
Low carbon technologies in industry
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LOW CARBON
Assessment
Score
Morocco
Score
EU
INDUSTRY
Incentives
• There are no policy instruments to support CCS.
Barriers
N.A. N.A N.A

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Chapter 3: Results
Energy efficiency in buildings
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ENERGY EFFICIENCY
Assessment
Score
Morocco
Score
EU
BUILDINGS
Incentives
• Morocco is currently in the process of implementing a new
building code.
• There are some fiscal incentives in place e.g. for compact
fluorescent lamps (WEC, 2008)
Barriers
• Fuels are subsidized e.g. the real market price of a 12 liter
cooking gas bottles — a widespread product — is more than DH
100 (US$14) while the standard retail price is DH 40 (US$5.6)
(Worldbank, 2012)

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Chapter 3: Results
Renewable energy in buildings
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RENEWABLE ENERGY
Assessment
Score
Morocco
Score
EU
BUILDINGS
Incentives
• Programe Shemsi for solar water heaters. Depending on
customer types, the program is available under the form
of a financial assistance through the support of studies
and experts funds, loans and regulatory requirements.
(Aderee, 2012)
Barriers
• Fuels are subsidized e.g. the real market price of a 12
liter cooking gas bottles — a widespread product — is
more than DH 100 (US$14) while the standard retail
price is DH 40 (US$5.6) (Worldbank, 2012)

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Chapter 3: Results
Energy efficiency in transport
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ENERGY EFFICIENCY
Assessment
Score
Morocco
Score
EU
TRANSPORT
Incentives
• No policy instrument incentivising energy efficiency in the
transport sector in place.
• The reduction of the energy intensity of transport and the
conversion of transport modes to less carbon-intensive
fuels in Casablanca was cited in the Moroccan submission
to the Clean Technology Development Programme as a
possible application of funds under the programme.
Barriers
• Transportation fuels are subsidised. Even after the latest
price raise in June 2012, the government subsidises 3.35
DH/litre of gasoil. Regulated price is 8.15 DH/liter.

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Chapter 3: Results
Renewable energy in transport
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RENEWABLE ENERGY
Assessment
Score
Morocco
Score
EU
TRANSPORT
Incentives
• No specific policy incentivising renewables in the
transport sector in place.
Barriers
• Transportation fuels are subsidised. Even after the latest
price raise in June 2012, the government subsidises 3.35
DH/litre of gasoil. Regulated price is 8.15 DH/litre.

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Chapter 3: Results
Low carbon technologies in transport
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LOW CARBON
Assessment
Score
Morocco
Score
EU
TRANSPORT
Incentives
• No specific policy incentivising low-carbon technologies in
the transport sector in place.
Barriers
N.A. N.A. N.A.

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Chapter 4: Conclusions
Electricity and heat supply
Sector assessment ‘electricity and heat supply’
> No policy instruments in place to incentivise efficiency of energy supply.
> Despite having set very ambitious renewables targets, Morocco is still
lacking a comprehensive renewable energy strategy, which would
address support for renewable energy in the long-term. Apart from
public tendering for large-scale wind and solar power projects, there is
no effective support scheme that would provide a strong incentive for
investments in small-scale projects.
> Grid connection agreement has to be negotiated with ONE on a project
basis, creating big uncertainty about the connection costs.
> Fuel oil for electricity production is highly subsidised. Price is in the order
of 2600 DH/tonne while fuel for industrial uses - which is already
subsidised - prices at 4666 DH/tonne.
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Chapter 4: Conclusions
Electricity and heat supply
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Policy Recommendations ‘electricity and heat supply’
> Progressive and socially compatible phase-out of fossil fuel subsidies
> Implementation of policy incentives for the adoption of energy
efficiency measures e.g. energy or carbon taxes, market mechanisms
such as emissions trade or white certificates and/or standards.
> Implementation of a long term framework for the support of
renewables.
> Providing a clearer regulatory framework for the connection of
renewables to the grid.

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Chapter 4: Conclusions
Industry
Sector assessment ‘industry’
> No policy instrument providing sufficient incentive for energy efficiency
investments in industry (e.g. support schemes, voluntary agreements,
white certificates, emissions trading, energy and/or CO2 taxes) is in place.
> There are, however, some developments in this area:
– Elaboration of the National Program of Energy Efficiency in Industry, with the aim
of developing the institutional and regulatory framework, provide support for
energy audits and investments and training of professionals.
– Some energy audits have been carried out with the financial support of the
African Development Bank and the characterization of industrial energy
consumption in Casablanca, Agadir and Tanger is in process.
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Chapter 4: Conclusions
Industry
> Apart from discussions on the implementation of a net metering
scheme, there is no specific policy instrument to incentivize the
uptake of renewable energies in the industrial sector is in place.
> Fuel oil for industrial use is highly subsidised. Even after the latest
price raise in June 2012, the government subsidy is in the range
of 2000 DH/tonne. Regulated price is 4666 DH/tonne.
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Chapter 4: Conclusions
Industry
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Policy recommendations ‘industry’
> Progressive and socially compatible phase-out of fossil fuel subsidies
> Implementation of policy incentives for the adoption of energy
efficiency measures e.g. energy or carbon taxes, market mechanisms
such as emissions trade or white certificates and/or standards.
> Implementation of a net metering scheme to incentivise investments
in on-site renewable energy.

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Chapter 4: Conclusions
Buildings
Sector assessment ‘buildings’
> In 2009 Morocco launched a programme to develop an energy efficiency
code for the built environment. This code, which is still to be approved,
will target hospitals, hotels, national education and residential buildings.
> Programme 'Shemsi' was established to spread the use of solar water
heaters. The programme aims at increasing the installed surface to 1.7
million m2 by 2020. Depending on customer types, the program is
available under the form of a financial assistance through the support of
studies and experts funds, loans or regulatory requirements. Source:
ADEREE www.aderee.ma
> Fuels are still highly subsidised e.g. the real market price of a 12 liter
cooking gas bottles—a widespread product —is more than DH 100
(US$14) while the standard retail price is DH 40 (US$5.6) (Worldbank,
2012)
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Chapter 4: Conclusions
Buildings
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Policy recommendations ‘buildings’
> Progressive and socially compatible phase-out of fossil fuel subsidies.
> Implementation of the building code.
> Adoption of minimum efficiency standards for household appliances.
> Implementation of a net metering scheme to incentivise investments
in on-site renewable energy.

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Chapter 4: Conclusions
Sector Conclusions – Transport
Sector assessment ‘transport’
> No policies to incentivise energy efficiency, renewable energies or
low carbon technologies in the transport sector are in place.
> Transportation fuels are subsidised. Even after the latest price
raise in June 2012, the government subsidises 3.35 DH/litre of
gasoil. Regulated price is 8.15 DH/litre.
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Chapter 4: Conclusions
Transport
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Policy recommendations ‘transport’
> Progressive and socially compatible phase-out of fossil fuel subsidies.
> Adoption of minimum emission standards for cars and trucks.
> Adoption of minimum biofuels blending requirements for road transport
fuels.

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Chapter 5: Overall conclusions
> Morocco has great potential for:
– Renewable energy (solar and wind)
– Energy efficiency (expected energy use growth ~6% per year)
> Ambitious first steps made, establishing national renewable and
energy efficiency targets
> Detailed policies to implement the targets are largely lacking
> Major barriers are fuel subsidies in all sectors
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References
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• Ecofys, 2011. EU Climate Policy Tracker. Published in November 2011 by WWF.
• Ministère de l'Aménagement du Territoìre, du l'Urbanisme, de l'Habitat et de
l'Environnement, 2010. Seconde Communication Nationale a la Convention Cadre
des Nations Unies sur les changements climatiques. Available from:
http://unfccc.int/resource/docs/natc/mornc2f.pdf
• World Energy Council, 2008. Energy Efficiency Policies around the World: Review
and Evaluation. ISBN: 0 946121 30 3
• Royaume du Maroc. Ministère de l’Energie, des Mines, de l’Eau et de
l’Environnement, 2010. La nouvelle Stratégie Energétique Nationale. September
2010.
• Royaume du Maroc. Ministère de l’Energie, des Mines, de l’Eau et de
l’Environnement,2010. Loi 13-09 relative aux énergies renouvelables. June 2010
• Regional Center for Renewable Energy and Energy Efficiency (RCREEE), 2010.
Provision of Technical Support/Services for an Economical, Technological and
Environmental Impact Assessment of National Regulations and Incentives for
Renewable Energy and Energy Efficiency. Country Report Morocco (DRAFT).
January 2010.

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References
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• Regional Center for Renewable Energy and Energy Efficiency (RCREEE), 2010.
Provision of Technical Support/Services for an Economical, Technological and
Environmental Impact Assessment of National Regulations and Incentives for
Renewable Energy and Energy Efficiency. Policies for Energy Efficiency and
Renewable Energy in the RCREEE Group of Countries. April 2010
• Worldbank, 2012. The real cost of fossil fuel subsidies. Available from
http://go.worldbank.org/EBQRS9K7H0
• Royaume du Maroc. Ministère de l’Energie, des Mines, de l’Eau et de
l’Environnement, 2011. Stratégie Energétique: Bilan d’Etape. May 2011.

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Annexes
> Annex I: Assessment of EU policies
> Annex II: Conclusions and recommendations per policy area
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Annex I – Overview of EU Policies
Energy Efficiency Renewables Low carbon
General Climate
Strategy
Energy supply
Energy Efficiency Directive
(2012/27/EU)
Effort Sharing Decision (2009/406/EC)
European Emissions Trading System
(ETS) (2009/29/EC)
Energy Taxation Directive (2003/96/EC)
Renewable Energy Directive
(2009/28/EC)
Internal electricity market Directive
(2009/72/EC)
Security of electricity supply and
infrastructure investment Directive
(2005/89/EC)
Effort Sharing Decision (2009/406/EC)
Carbon Capture and Storage
(CCS) Directive (2011/92/EU)
Industry
Eco-design Directive (2009/125/EC)
Energy Labelling Directive
(2010/30/EU)
Energy Efficiency Directive
(2012/27/EU)
European Emissions Trading System
(ETS) (2009/29/EC)
• Energy Taxation Directive (2003/96/EC)
• Renewable Energy Directive
(2009/28/EC)
Carbon Capture and Storage
(CCS) Directive (2009/31/EC)
Industrial Emissions Directive
(IED) (2010/75/EU)
Landfill Directive (1999/31/EC)
Buildings
• Energy Performance of Buildings
Directive (EPBD) (2010/31/EU)
• Energy Efficiency Directive
(2012/27/EU)
• Eco-design Directive (2009/125/EC)
• Energy Labeling Directive (2010/30/EU)
• Energy Taxation Directive (2003/96/EC)
• Renewable Energy Directive
(2009/28/EC)
Transport
• Regulation on Energy Efficiency for
passenger cars (443/2009)
• European Emissions Trading System
(ETS) (2009/29/EC)
• Energy Taxation Directive (2003/96/EC)
• Renewable Energy Directive
(2009/28/EC)

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Annex II
Policy Area Conclusions – Energy Efficiency
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ENERGY EFFICIENCY
POLICYAREACONCLUSIONS
AreaAssessment
• Morocco has set targets for energy efficiency of 12% reduction in energy use by 2020 and 15%
reduction by 2030. These percentages are related to the expected energy demand at those dates
in the absence of the energy efficiency initiatives. The priorities for the short-term are contained
within the Plan Nationale des Actions Prioritaires (PNAP) (RCREEE, 2010)
• The National Agency for the Development of Renewable Energies and Energy Efficiency was
established in 2010
• Apart from public funding for a limited number of energy audits, there is no policy instrument in
place to promote the adoption of efficiency measures in industry.
• The building code is yet to be approved.
• No relevant policies to promote energy efficiency in the transport sector.
• The adoption of energy efficiency measures is disincentivised by highly subsidised fossil fuels in all
sectors.

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Annex II
Recommendations Policy Area Energy Efficiency
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> Progressive and socially compatible phase-out of fossil fuel subsidies
> Implementation of policy instruments e.g. energy or carbon taxes,
market mechanisms such as emissions trade or white certificates to
incentivise efficiency in the energy supply and industrial sectors.
> Implementation of the building code.
> Adoption of minimum efficiency standards for household appliances.
> Adoption of minimum emission standards for cars and trucks.

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Annex II
Policy Area Conclusions – Renewable Energy
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RENEWABLE ENERGY
POLICYAREACONCLUSIONS
AreaAssessment
• The National Energy Strategy of Morocco and the related National Priority Action Plan (PNAP), both launched in
2008, set a target to meet 10–12% of the country’s primary energy demand by 2020 and 15–20% by 2030 with
renewable energy sources.
• By 2020, Morocco aims to produce 20 % of all electricity from renewable energy sources. To achieve this
objective, the country seeks to have a total installed renewable energy capacity of 6 GW (or 42 % of the total
installed capacity). The 20 % / 42 %-target by 2020 is ambitious, particularly considering the current share of
renewables, which predominantly consists of long existing hydropower plants.
• The National Agency for the Development of Renewable Energies and Energy Efficiency was established in 2010.
• Despite these developments, Morocco is still lacking a comprehensive renewable energy strategy, which would
address support for renewable energy in the long-term. Apart from public tendering for large-scale wind and solar
power projects, there is no effective support scheme that would provide a strong incentive for investments in
small-scale projects . No specific policy instruments to incentivise an increase of renewable energy in industry
have been found.
• Fossil fuels are highly subsidised in all sectors. This creates a strong disincentive for the adoption of renewables.

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Annex II
Recommendations Policy Area Renewable Energy
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> Progressive and socially compatible phase-out of fossil fuel subsidies
> Implementation of a long term framework for the economic support of
renewables.
> Providing a clearer regulatory framework for the connection of
renewables to the grid.
> Implementation of a net metering scheme to incentivise investments
in on-site renewable power in industry as well as residential and
commercial buildings.
> Adoption of minimum biofuels blending requirements for road
transport fuels.

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