The European Investment Bank agreed to provide Morocco with €250 million through a green bond to finance upgrades to the country’s solar and wind power grid, officials said Thursday. The financing supports Morocco’s state utility ONEE in expanding transmission capacity to integrate rising renewable energy output, aligning with the EU–Morocco Green Partnership and the New Pact for the Mediterranean, according to EIB sources.
The €250 million financing is part of a broader €300 million package led by the European Investment Bank (EIB) to expand and modernize Morocco’s electricity transmission network, sources confirmed. The EIB is providing €170 million of the total, with the German development bank KfW contributing €130 million, officials said. This joint “Team Europe” operation aims to extend and reinforce 731 kilometers of transmission lines and increase transfer capacity by 1,850 megavolt-amperes (MVA), facilitating the integration of growing solar and wind power generation into the national grid, according to EIB and National Office for Electricity and Drinking Water (ONEE) representatives.
The grid upgrades will help evacuate electricity from Jbel Lahdid and other renewable assets, reducing curtailment and enabling further capacity additions, EIB sources said.
The financing supports Morocco’s state utility ONEE in managing rising renewable energy output, particularly from projects such as the 270-megawatt Jbel Lahdid wind farm in Essaouira province. Commissioned in October 2024, the wind farm is expected to generate approximately 952 gigawatt-hours annually, enough to supply about 1.2 million people, according to ONEE statements.
The grid expansion package also aligns with Morocco’s national strategy to add 12.5 gigawatts of renewable capacity by 2030, part of a broader €220 billion investment plan through that year. Of this, approximately €177 billion is earmarked for the electricity sector, including transmission infrastructure and system upgrades, ONEE officials noted. Planned projects include a 1,400-kilometer “electric highway” to connect southern renewable generation sites with central load centers, enhancing power evacuation and grid reliability.
According to joint statements from the EIB, KfW, the European Union, and ONEE, the grid investments are expected to reduce greenhouse gas emissions by about 390,000 tonnes of CO₂-equivalent annually by 2030. These reductions stem from increased renewable electricity feeding into the grid, displacing fossil-fuel-based generation. The EIB said all its energy operations outside the European Union must comply with the Paris Agreement, underscoring the climate mitigation focus of the financing.
The €300 million transmission package is framed within the EU–Morocco Green Partnership and the EU’s New Pact for the Mediterranean, which prioritize low-carbon infrastructure and climate-resilient investments, according to EIB Global documents. These initiatives combine EU budget resources, EIB lending, and contributions from other European development financiers to support Morocco’s energy transition and regional cooperation goals.
While the EIB has publicly documented a €170 million loan for grid expansion and a separate €250 million financing package for Morocco’s rail sector, there is no official record specifically describing a €250 million “green bond” issued by the EIB for solar and wind grid upgrades, sources confirmed. The rail financing, signed in December 2022 with Morocco’s rail operator ONCF, was explicitly framed as the first project under the EU–Morocco Green Partnership and aimed at low-carbon mobility. Separately, the European Bank for Reconstruction and Development (EBRD) announced a green bond investment in ONCF’s rail sector in 2025, marking a precedent for labeled green bonds in Moroccan infrastructure.
EIB officials emphasized that the bank’s Morocco portfolio represents the highest annual volume of financing since 2012, with €740 million signed in 2025 via EIB Global. This financing supports Morocco’s energy security, decarbonization, and regional economic development objectives, in line with the country’s updated climate and energy targets. High-level visits involving EIB Vice-President Ioannis Tsakiris, KfW board member Christiane Laibach, and EU Delegation representative Daniel Duto have underscored the strategic nature of European support during announcements at the Jbel Lahdid wind farm.
Previous European investments have also supported Morocco’s Noor Ouarzazate solar complex, one of the world’s largest solar power plants. The EIB financed €217.5 million of the project, complemented by €106.5 million in EU Neighbourhood Investment Facility grants and contributions from other European partners, covering up to 60% of project costs, according to sector analyses.
The reinforced transmission infrastructure financed by the EIB and partners is designed to integrate existing renewable assets like Noor Ouarzazate and early wind farms while enabling new solar and wind projects. This approach aims to reduce grid bottlenecks and support the development of Morocco’s renewable energy pipeline, sources said.
Morocco’s broader investment and policy framework envisions renewable energy integration and power sector decarbonization as central to achieving both domestic and cross-Mediterranean climate goals. The EU–Morocco Green Partnership treats Morocco as a key partner for green hydrogen, renewable exports, and cross-border energy trade, all of which depend on upgraded transmission capacity and system flexibility.
The EIB’s use of green and sustainability bonds to finance climate-aligned infrastructure globally is well established, but the specific €250 million green bond for solar and wind grid upgrades in Morocco has not appeared in publicly accessible EIB or EU releases, indicating the instrument may be reported under different terms or pending formal publication. Meanwhile, Morocco continues to leverage a combination of loans, grants, and green bond instruments to advance its energy transition objectives with European support.
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