Executive Viability Abstract
Morocco possesses one of the world's most promising offshore wind resource profiles, with 3,500km of coastline and wind speeds averaging 7.5 to 11 m/s. This feasibility study evaluates the development of a 500MW offshore wind farm, likely situated near Essaouira or the Dakhla region, aiming to capitalize on Morocco's goal of achieving 52% renewable energy capacity by 2030. The project is highly viable due to strategic proximity to European energy markets and robust local industrial demand.
Return on Investment
14.5%
Payback Span
11.2 years
Net Present Value
$580 Million
IRR Index
15.8%
## Market Analysis
Morocco is currently a net energy importer, but its 'National Energy Strategy' positions it to become a regional green energy hub. The market is driven by increasing domestic electricity demand (+4% annually) and the European Union's 'Green Deal' which seeks to import clean energy via the existing and proposed Mediterranean interconnectors. Competitors in the region are primarily onshore wind and solar CSP, but offshore wind offers higher capacity factors (45-50% vs 30-35% for onshore).
## Capex Summary
Total estimated CAPEX for a 500MW facility is approximately $1.95 Billion. Breakdown:
- Turbines (12-15MW units): $850M
- Foundations & Substructures: $420M
- Electrical Infrastructure (Substations/Cables): $310M
- Installation & Logistics: $220M
- Contingency and Project Management: $150M
## Revenue Model
Revenue is generated through two primary channels:
1. **Fixed-rate Power Purchase Agreements (PPA):** 20-year contracts with ONEE (Office National de l'Electricite) at an estimated $0.06/kWh.
2. **Direct Exports:** Utilizing the Interconnection Morocco-Spain and future UK-Morocco links to sell at premium spot prices or through REGOs (Renewable Energy Guarantees of Origin).
## ROI Summary
With an estimated annual production of 2,190 GWh, the project yields an annual gross revenue of approximately $131M. Factoring in OPEX ($45M/year), the Net ROI sits at approximately 14.5% over the 25-year asset life, supported by de-risking mechanisms from international financial institutions (IFC/EBRD).