Morocco Secures New Coal Supply Deal to Bolster Casablanca Grid

The national electricity utility ONEE announced on Tuesday that it has signed a multi‑year agreement with mining giant Glencore to import thermal coal for the Casablanca power complex, aiming to stabilize supply ahead of the peak summer demand season. The contract, valued at several hundred million dollars, will see shipments arrive at the port of Jorf Lasfar starting in September, with deliveries scheduled over the next five years. This move follows a series of rolling blackouts that affected households and industry in the economic hub earlier this year.

Historically, Morocco has relied heavily on imported energy, with coal accounting for roughly 20 percent of its generation mix despite ambitious renewable targets. The Casablanca region, home to more than three million residents and a concentration of manufacturing, has experienced chronic capacity gaps as older plants age and new renewable projects face grid‑integration delays. Glencore, a global supplier with extensive logistics networks across Africa, offers a reliable source of high‑grade coal that can be blended with existing fuel stocks to keep the baseload plants running smoothly.

Analysts note that the agreement underscores a pragmatic approach by Moroccan authorities, balancing climate commitments with immediate reliability concerns. Energy experts from the African Development Bank point out that while coal imports can provide short‑term security, they may also lock the country into higher carbon emissions and expose it to volatile commodity prices. Local industry groups have welcomed the deal, citing reduced risk of production downtime, whereas environmental NGOs have warned that the move could undermine Morocco’s renewable‑energy roadmap and call for stronger policy incentives.

For Ethiopia, the development carries both opportunities and competitive pressures in the regional power market. As Ethiopia expands its hydro‑electric capacity and seeks to become a net electricity exporter, neighboring countries like Morocco represent potential new customers for surplus power. However, the reliance on coal in Morocco could limit immediate demand for Ethiopian clean energy, prompting Addis Ababa to accelerate its own transmission infrastructure and explore bilateral agreements that emphasize renewable trade. The deal also highlights the broader dynamics of North‑East African energy interdependence, where infrastructure bottlenecks and policy alignment remain critical.

Looking ahead, observers will monitor how quickly the coal shipments are integrated into Casablanca’s generation fleet and whether the arrangement triggers any revisions to Morocco’s long‑term energy strategy. Key indicators include the performance of the power plant during the upcoming summer peak, the evolution of domestic renewable project pipelines, and any regulatory adjustments concerning carbon pricing. Stakeholders are also watching for potential spill‑over effects on regional electricity pricing, which could influence Ethiopia’s export contracts and the overall trajectory of Africa’s energy transition.