Expansion of Renewable Energy Investments
Acwa Power, the prominent Saudi utility firm, is actively pursuing an expansion of its investments in Morocco's renewable energy landscape, with a keen interest in seawater desalination and green hydrogen projects. This was highlighted in a recent interview with Omar Alaoui Mhamdi, the country manager for Acwa in Morocco, who shared insights with Asharq Bloomberg on the company's strategic direction. Acwa's flagship project in the region, the Khalladi wind farm, stands out with an impressive installed capacity of nearly 120 megawatts, generated by 40 wind turbines. Having commenced operations in 2018, this facility marked Acwa's inaugural venture into wind energy on a global scale.
Situated at an altitude of approximately 800 meters on Jbel Sendouq, the Khalladi plant produces around 375 gigawatt-hours of electricity annually, which is sufficient to power approximately 400,000 residents each year. Recently, Acwa received a permit to enhance the plant's capacity by an additional 40 megawatts through an investment of around 550 million Moroccan dirhams (approximately $60 million). Mhamdi indicated that this expansion is anticipated to be finalized within the next two years to cater to the increasing energy demands from industrial clients.
Benchmarking Success and Future Prospects
The Khalladi facility is viewed by Acwa as a benchmark project, not just in terms of operational efficiency but also its financial viability. Last year, the facility achieved an impressive availability rate of approximately 99.05 percent, surpassing both the contractual requirement of 97 percent and the internal budget target of 98.5 percent. The total investment for the project was around 1.8 billion dirhams, funded through equity contributions alongside support from both local and international banks. Acwa Operations, a subsidiary of the group, oversees the maintenance of the plant.
Electricity generated at the Khalladi facility is sold directly to various Moroccan industrial sectors, including cement, textiles, and steel, through long-term power purchase agreements. This arrangement is facilitated by Morocco's Law 13.09, which permits private companies to generate and sell renewable energy directly to consumers without the need for intermediaries from the state electricity and water utility. With a cumulative investment approaching $3 billion in Morocco, Acwa is also responsible for several other clean energy projects within the country, including the Noor Ouarzazate Solar Complex and solar power plants located in Laayoune and Boujdour.
In addition to its existing projects, Acwa has been selected by the Moroccan government as part of the initial cohort for green hydrogen investment projects, although negotiations regarding land allocation and implementation are still in progress. Mhamdi emphasized, "The development of wind and solar energy continues to be a primary focus for us in Morocco. Additionally, we are exploring seawater desalination initiatives and have future plans for green hydrogen projects," noting Morocco's abundant renewable energy potential across its diverse regions. As the largest power generation and seawater desalination company in the Middle East, Acwa Power boasts renewable energy and green hydrogen initiatives in 15 countries, with assets totaling $124.4 billion and a total power generation capacity of 97.9 GW, including 52.2 GW sourced from renewable energy.
As reported by fuelcellsworks.com.
