Morocco Ranks Africa’s Most Competitive Renewable Energy

Rabat – Morocco’s low solar power costs and ambitious investments in green hydrogen are strengthening its position as one of Africa’s most competitive renewable energy markets, according to a recent report by Mordor Intelligence.

The Africa Renewable Energy Market is projected to grow at an average annual rate of 15.62% between 2026 and 2031, with installed renewable capacity expected to rise from 86.95 gigawatts in 2026 to 179.66 GW by 2031. Solar photovoltaic capacity is forecast to be the fastest-growing segment, with a projected annual growth rate of 27.84%.

Morocco stands out in the report for the competitiveness of its solar sector. Utility-scale solar auction tariffs in Morocco and Egypt fell below $0.03 per kilowatt-hour in 2025, reflecting the continued decline in the cost of solar power generation. 

The country is also positioning itself as an emerging hub for green hydrogen. Mordor Intelligence identifies Morocco among the African markets developing green-hydrogen export hubs, alongside Egypt, Namibia, Mauritania and South Africa. 

According to the report, Morocco is directing $32.5 billion (MAD 304.5 billion) toward the development of renewable energy projects linked to its green-hydrogen ambitions, including the Noor Midelt and Atlantic wind complexes. The projects are intended to support the production and export of up to 3 million tonnes of hydrogen annually, including supplies destined for Europe.

Morocco’s renewable energy strategy is also attracting major international developers. The report identifies companies including ACWA Power, Masdar, ENGIE and Enel Green Power among the major players contributing to the development of Africa’s renewable energy sector.

The wider African market is being driven by falling solar photovoltaic costs, the expansion of mini-grids and the development of green-hydrogen corridors. South Africa, Namibia, Egypt, Nigeria, and Kenya are also advancing large-scale renewable energy projects, although the sector continues to face challenges including grid constraints, renewable-energy curtailment and currency-convertibility risks. 

Against this backdrop, Morocco is seeking to combine competitive renewable electricity prices with large-scale green-hydrogen development, reinforcing its ambitions to serve as an energy link between Africa and European markets.