The Morocco-Portugal electricity interconnection project is on the brink of a significant advancement, as efforts intensify to secure the necessary funding for a marine cable that will connect the electricity networks of the two countries. Lisbon, as reported by the specialized energy platform based in Washington, is optimistic about garnering support from the European Union and attracting private sector investments, especially in light of the rising costs associated with the project and both nations' reluctance to rely solely on public funds.
This interconnection plan holds increasing significance for Portugal, which is actively seeking additional pathways to enhance its electricity supply security and grid flexibility, particularly after a widespread blackout that affected the Iberian Peninsula in April 2026. The electricity interconnection project has resurfaced after years of discussions between Rabat and Lisbon, with efforts underway to classify it as a project of European interest, which could pave the way for accessing European funding mechanisms.
Funding the Electricity Interconnection Between Morocco and Portugal
Portuguese Environment and Energy Minister Maria da Graça Carvalho stated that Morocco and Portugal have agreed to proceed with the electricity interconnection project, contingent upon interest from the private sector or assistance from the European Union. She clarified that both countries do not intend to rely solely on public funding, given the high investment costs of the project. Previous estimates suggested a cost exceeding €800 million (approximately $936 million), but the Portuguese minister acknowledged that this figure could fluctuate based on evolving costs and the final route of the marine cable.
Upcoming initiatives include inviting private companies, particularly those involved in energy and electricity distribution, to submit proposals for potential participation in the project. Rabat and Lisbon are also looking to present the project to the European Commission and assess its chances of receiving European support, following a revitalization of discussions surrounding the electricity interconnection in recent months.
Electricity Security in Portugal
The recent blackout in Spain and Portugal has underscored the importance of network security, elevating it to the forefront of national priorities and highlighting the need for alternative options in the face of electrical system disruptions. The Portuguese Minister of Environment and Energy emphasized the necessity for energy alternatives to counter complete electricity outages, noting that Portugal's connection to the Iberian electricity market with Spain proved insufficient during the previous crisis. Consequently, Portugal had to restart its electrical system independently, prompting the government to consider interconnecting with Morocco as a viable option to enhance grid resilience.
Importantly, the execution of this project does not imply that electricity flows will be exclusively from Morocco to Portugal; rather, the goal is to facilitate interconnection and electricity exchange based on the needs of both systems and market conditions, thereby promoting electrical integration across the Mediterranean. This initiative also provides Portugal with an additional connection route outside the Iberian Peninsula, while allowing Morocco to further integrate its network with European electricity markets, alongside its existing links with Spain.
Efforts to study the electricity interconnection between Morocco and Portugal date back over a decade, with both countries discussing energy linkages since 2015, culminating in a signed declaration of principles and the initiation of a feasibility study for the project. The momentum surrounding the project was renewed in July 2026 when Moroccan Energy Transition and Sustainable Development Minister Leila Benali met her Portuguese counterpart in Lisbon, and both parties explored ways to reinvigorate interconnection plans. Portugal views this project as not only beneficial for bilateral interests but also significant for Europe and Africa, supporting efforts to classify it as a project of European interest.
Securing this classification could enhance opportunities for accessing European funding, which is crucial for advancing the project from the study and discussion phases to more actionable steps. As the electricity interconnection project between Morocco and Portugal gains traction, it coincides with Lisbon's initiatives to bolster the resilience of its electricity system, including plans to increase storage capacities in the coming years. The "National Storage Strategy" aims to raise electricity storage capacity in Portugal to 6.9 GW by 2030 and to 9.76 GW by 2040, enabling the government to enhance supply security and grid stability while integrating larger shares of renewable energy into the electricity mix.
Thus, Lisbon's approach blends the expansion of external electricity connection options with the strengthening of local storage capabilities, striving to increase grid flexibility in the wake of the recent blackout crisis and supporting the transition to a more diversified electricity system. As reported by attaqa.net.
