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Algeria Seeks to Replace Morocco in Major Renewable Energy Project

PUBLISHED July 24, 2026
Algeria Seeks to Replace Morocco in Major Renewable Energy Project

Recent reports have emerged indicating that Algerian President Abdelmadjid Tebboune proposed Algeria as an alternative to Morocco in the significant "Sila Atlantic" project during his recent discussions with German officials in Berlin. This ambitious project aims to transmit electricity generated from renewable energy sources to Germany via a transcontinental underwater cable. According to informed German sources cited by assahifa.com, Tebboune presented this proposal seriously as part of the energy files discussed during his visit to Berlin on July 16. He emphasized Algeria's capacity to meet the necessary technical and natural conditions for producing electricity from both solar and wind energy, akin to Morocco's capabilities.

The sources further revealed that the Algerian president suggested easing the requirements that Algeria might impose for the project's execution, in contrast to the conditions set forth by Morocco. He expressed Algeria's readiness to bear or finance a significant portion of the project's costs. This proposal was presented as an opportunity for Germany to navigate current obstacles while highlighting Algeria's abundant land, solar radiation, and potential for renewable energy production in the Algerian desert.

However, it was noted that German officials merely listened to the proposal without providing a detailed response or any political or technical commitment, leaving the door open to various possibilities. The official statement released after Tebboune's visit to Berlin did not mention the "Sila Atlantic" project or the possibility of replacing Morocco with Algeria, although it did confirm that energy, energy transition, and infrastructure were key topics of discussion, stressing the importance of the German-Algerian partnership and the Southern Hydrogen Corridor project.

This development comes on the heels of a Reuters report detailing the challenges faced by the electricity interconnection project between Morocco and Germany, estimated to cost around $30 billion. According to the agency, based on four Moroccan and German sources, the main dispute revolves around the project's structure and long-term political and legal guarantees rather than its technical feasibility.

Morocco insists on formalizing a government agreement with Berlin, which would provide clear sovereign support for the project and ensure its long-term viability. They also demand that the cable allow for bi-directional electricity flow instead of solely exporting Moroccan energy to the German market. A German source indicated that while bi-directional connectivity is technically feasible, it would incur higher economic costs.

Reuters further reported that Moroccan authorities had committed to allocating approximately 150,000 hectares in the Guelmim-Oued Noun region for the previous British project but have yet to approve the same area for "Sila Atlantic." Conversely, the company involved has stated that the project is progressing according to its technical, commercial, regulatory, and financial plans, and they are continuously evaluating suitable options for its long-term development, indicating that negotiations and conditions are still being finalized rather than a definitive cancellation.

The "Sila Atlantic" project envisions the establishment of two high-voltage underwater lines spanning nearly 4,800 kilometers, with a total capacity of 3.6 gigawatts, fed by solar and wind facilities in Morocco with a potential capacity of up to 15 gigawatts, alongside electricity storage systems. According to its developers, the project could provide around 26 terawatt-hours annually, equating to nearly 5% of Germany's electricity consumption, with the capability to deliver clean energy for over 20 hours a day due to the combination of solar and wind production and storage.

The initial concept originated from a British project named "X Links," aimed at transporting clean electricity from the region of Tan-Tan to Britain via a marine cable approximately 4,000 kilometers long. However, the British government decided in June 2025 not to proceed with granting the project a long-term price guarantee, eliminating its guaranteed sales path in the British market. Following this, a new German company was established to develop the "Sila Atlantic" project, directly connecting Morocco to Germany, with the involvement of the "X Links" company as part of the supporting investors. Despite the current setbacks, there are no official indications that Berlin has abandoned the Moroccan option.

In February, Germany's State Secretary for Economic Affairs, Frank Wetzel, expressed interest in the project and willingness to continue discussions in a letter to Moroccan Investment Minister Karim Zidane. The project has also been included in exploratory phases within the planning of the long-term European electricity transmission network.

The timing of Algeria's proposal appears to be strategic, coinciding with public disputes regarding arrangements and guarantees between Rabat and Berlin. Additionally, Algeria already has a foundation for energy cooperation with Germany that includes gas, green hydrogen, and the Southern Hydrogen Corridor, providing a political backdrop for Tebboune's suggestion for Berlin to consider, even though no official position has been declared regarding the replacement of the project site.

However, replacing Morocco with Algeria would not simply entail relocating production stations; the current design is tied to Moroccan sites, a specified marine route, technical and regulatory studies, land requirements, network connectivity, and investor conditions. Consequently, shifting the project to Algeria could necessitate a complete redesign, redirection, financing, and licensing from the ground up. This analytical conclusion stems from the declared nature of the project and does not reflect an official stance from the company or the German government.

Conversely, Morocco's conditions reflect a desire to ensure that the project does not become a one-way channel solely for electricity export, but rather a strategic infrastructure that allows the kingdom to benefit from the interconnection as needed, framed by a government agreement that protects it from changes in governments or European policies.

Thus, amid Algeria's generous offer and Morocco's insistence on economic viability guarantees through mutual flow, the German decision remains open, as renewable energy transforms into a new arena for geopolitical competition between Rabat and Algiers for the position of the green partner closest to Europe.

Lemaroc360 - Morocco News

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