Acwa Power expands Morocco ambitions with desalination and green hydrogen plans

Saudi energy company ACWA Power is preparing to expand its investments in Morocco beyond renewable electricity, targeting strategic sectors such as seawater desalination, green hydrogen production, and energy storage. The move reflects ACWA Power Morocco’s broader effort to strengthen its role in the country’s energy transition and industrial development.

ACWA Power Morocco is already among the largest foreign investors in the kingdom’s renewable energy sector, with investments approaching $3 billion across several solar and wind power projects. The company’s growing portfolio positions it as a key partner in Morocco’s clean energy ambitions.

One of the company’s most significant assets is the Khalladi wind farm in northern Morocco. Operational since 2018, the facility has an installed capacity of 120 megawatts generated by 40 wind turbines. The project marked ACWA Power’s first wind energy development worldwide.

During a visit to the site, ACWA Power Morocco General Manager Omar Aaloui Mhamdi stated that the wind farm generates approximately 375 gigawatt-hours of electricity each year, supplying enough power for around 400,000 people.

The company recently secured authorization to increase the facility’s capacity by an additional 40 megawatts. The expansion is expected to require an investment of about MAD 550 million, equivalent to roughly $60 million. Construction could be completed within two years to meet rising demand from industrial customers.

Electricity produced by the Khalladi wind farm is sold directly to Moroccan industrial companies through long-term power purchase agreements. Beneficiaries include businesses operating in sectors such as cement, textiles, and steel. This model is enabled by Morocco’s renewable energy regulations, which allow private operators to generate and sell renewable electricity directly to end users.

Beyond Khalladi, ACWA Power manages several major renewable energy projects across Morocco. These include the Noor Ouarzazate solar complex as well as solar facilities located in Laayoune and Boujdour.

The company has also been selected among the investors participating in the first phase of Morocco’s green hydrogen development program. Discussions with Moroccan authorities remain underway before advancing to subsequent stages involving land allocation and project execution.

According to Mhamdi, renewable energy will remain a central pillar of ACWA Power’s strategy in Morocco. However, future investments may increasingly focus on desalination infrastructure and green hydrogen production, sectors viewed as critical to the country’s long-term economic and environmental objectives.

Morocco has emerged as a leading regional hub for renewable energy and green hydrogen. The country continues to attract international investors seeking to capitalize on its abundant solar and wind resources. Government-backed initiatives aimed at accelerating clean energy development and reducing reliance on fossil fuels have further strengthened its appeal.

ACWA Power ranks among the largest energy and desalination companies in the Middle East. The group operates projects across 15 countries and manages assets exceeding $124 billion. Its global power generation portfolio approaches 98 gigawatts, including more than 52 gigawatts derived from renewable energy sources.