The Morocco-Portugal electricity interconnection project is poised for a significant leap forward, with the two nations actively pursuing the necessary funding to implement a subsea cable that will link their electricity grids. Lisbon is keenly focusing on securing support from the European Union and attracting private sector investments, especially in light of the project's escalating costs and both countries' reluctance to rely solely on public funds for its execution.
This interconnection scheme has gained increasing importance for Portugal, which is exploring additional avenues to bolster its electricity supply security and network resilience, particularly following a substantial power outage that affected the Iberian Peninsula in April 2026. After years of discussions between Rabat and Lisbon, the electricity interconnection project has resurfaced with renewed vigor, as both countries aim to classify it as a project of European interest, potentially unlocking access to European funding mechanisms.
Funding for the Electricity Interconnection
Portuguese Environment and Energy Minister Maria da Graça Carvalho stated that Morocco and Portugal have agreed to advance the electricity interconnection project, contingent upon interest from the private sector or assistance from the European Union. The two nations do not intend to depend solely on public funds, given the high investment costs associated with the project. Preliminary estimates suggested that the project could exceed €800 million (approximately $936 million), but the minister noted that this figure may fluctuate due to evolving costs and the final route of the subsea cable.
Anticipated actions include inviting private companies, particularly those in the energy and electricity distribution sectors, to submit proposals for potential participation in the project. Both Rabat and Lisbon are also keen to present the project to the European Commission to evaluate its chances of securing European support, having revitalized discussions regarding the electricity interconnection in recent months.
Electricity Security in Portugal
The power outage that affected Spain and Portugal in April has thrust network security to the forefront of national priorities and highlighted the necessity for supplementary options to mitigate disruptions in the electrical system. The Portuguese minister of environment and energy emphasized the need for alternative energy sources to counteract complete power failures, noting that Portugal's connection to the Iberian electricity market with Spain was insufficient during the recent crisis. Consequently, Portugal had to restart its electricity system independently, prompting the government to consider interconnecting with Morocco as a viable option to enhance grid resilience.
It is important to note that the implementation of this project will not confine electricity flows exclusively from Morocco to Portugal; rather, the interconnection aims to facilitate the exchange of electricity based on the needs of both systems and market conditions, thereby enhancing electrical integration across the Mediterranean basin. Additionally, the project will provide Portugal with an alternative connection route outside the Iberian Peninsula while allowing Morocco to strengthen its network's integration with European electricity markets, alongside its existing ties with Spain.
The collaboration to explore the electricity interconnection between Morocco and Portugal dates back over a decade, as both countries have been discussing energy linkages since 2015. The momentum around the project was renewed in July 2026 when Morocco's Minister of Energy Transition and Sustainable Development, Leila Benali, met with her Portuguese counterpart in Lisbon to explore ways to advance the interconnection plans. Portugal views this initiative as not only beneficial for bilateral relations but also significant for both Europe and Africa, supporting efforts to classify it as a project of European interest. Achieving this designation could enhance access to European funding, a critical component for transitioning the project from studies and discussions to more advanced implementation steps.
This revival of the Morocco-Portugal electricity interconnection project 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 elevate electricity storage capabilities in Portugal to 6.9 gigawatts by 2030 and further to 9.76 gigawatts by 2040. The government is optimistic that expanding storage will enhance supply security and network stability while facilitating the integration of a greater share of renewable energy sources into the electricity mix.
Ultimately, this strategic approach unites Lisbon's efforts to expand external electricity interconnections with the enhancement of local storage capabilities, aiming to increase grid resilience following the recent power outage and support a transition towards a more diverse electricity system.
As reported by attaqa.net.
