Progress in the Morocco-Portugal Electricity Interconnection
The Morocco-Portugal electricity interconnection project is on the cusp of significant advancements, driven by efforts to secure the necessary funding for a maritime cable that will link the power grids of both nations. Lisbon is actively seeking support from the European Union while also looking to attract private sector investments. This initiative is critical, especially in light of the high costs associated with the project, as both countries prefer not to rely solely on public funding.
This interconnection plan has gained increasing importance for Portugal, particularly as the country explores additional pathways to enhance electricity supply security and network flexibility. This necessity has been underscored by the widespread power outage that affected the Iberian Peninsula in April 2026, highlighting the urgency of the project.
Funding and Strategic Importance
Portugal’s Environment and Energy Minister, Maria da Graça Carvalho, has stated that both Morocco and Portugal are committed to moving forward with the electricity interconnection project, contingent upon interest from the private sector or assistance from the European Union. The focus is on avoiding sole reliance on public funds, given the investment costs, which are estimated to exceed 800 million euros (approximately 936 million USD). However, the minister noted that this figure may fluctuate due to evolving costs and the final route of the maritime cable.
To increase the viability of this project, there are plans to open expressions of interest to private companies, including those in the energy and electricity distribution sectors, inviting proposals for participation. Both nations are also eager to present the project to the European Commission to assess its potential for European funding support, especially as they have revitalized discussions surrounding electricity interconnection in recent months.
The recent power outages in Spain and Portugal have amplified concerns over network security, emphasizing the need for additional options to mitigate disruptions in the electricity system. Portugal’s Environment and Energy Minister has pointed out that alternative energy solutions are essential to address the risk of total power outages, especially considering that the existing connection with Spain was insufficient during the previous crisis.
Implementing this interconnection does not imply that electricity will exclusively flow from Morocco to Portugal; rather, it is intended to facilitate electricity exchange based on the needs of both systems and market conditions, thereby enhancing electrical integration across the Mediterranean.
This project not only offers Portugal an additional connection route outside the Iberian Peninsula but also allows Morocco to strengthen its integration with European electricity markets, complementing its existing links with Spain. The collaborative efforts to study the electricity interconnection have been ongoing for over a decade, with discussions dating back to 2015 leading to a principles declaration and the initiation of a feasibility study for the project.
Recent momentum was rekindled in July 2026 when Moroccan Minister for Energy Transition and Sustainable Development, Leila Benali, met with her Portuguese counterpart in Lisbon to discuss ways to advance connectivity plans. Portugal views the project as beneficial not only for bilateral interests but also as significant for Europe and Africa, supporting initiatives to classify it as a European interest project. Securing this classification could enhance access to European funding, which is critical for progressing from discussions to actionable implementation phases.
As these efforts to establish the electricity interconnection between Morocco and Portugal intensify, they coincide with Lisbon's initiatives to enhance the resilience of its electricity system, including plans to expand storage capacity in the coming years. The National Storage Strategy aims to boost electricity storage capabilities in Portugal to 6.9 gigawatts by 2030, ultimately reaching 9.76 gigawatts by 2040. The government believes that expanding storage will enhance supply security and network stability while supporting the integration of larger shares of renewable energy into the electricity mix. Minister Carvalho emphasized that increased storage capacity will promote competition in the energy market and gradually reduce reliance on electricity generated from natural gas plants. Thus, Lisbon's strategy combines expanding external electricity connections with bolstering local storage capabilities, aiming to increase network flexibility after the recent power outage crisis and facilitate a transition toward a more diversified electricity system.
As reported by attaqa.net.
