Morocco and the United Arab Emirates are deepening strategic cooperation in energy and water infrastructure with a series of major joint ventures that could transform the North African kingdom’s power and water sectors.
The partnership involves two of the region’s leading utility firms Taqa Morocco and Nareva Holding alongside Morocco’s national utility, ONEE, and the Mohammed VI Investment Fund. Together, the stakeholders plan to invest nearly 130 billion Moroccan dirhams (approximately US$12.6 billion) by 2030 in initiatives spanning clean power generation, seawater desalination, and high-voltage electricity transmission.
A central element of the collaboration is the joint acquisition of at least 85 percent of Energie Electrique de Tahaddart, a Tanger-based combined-cycle gas plant currently producing 400 megawatts (MW). Taqa Morocco and Nareva Holding will each hold equal 42.5 percent stakes. In addition, a new joint venture, Tahaddart 2 & 3, will oversee construction of an adjacent combined-cycle facility with capacity projected between 1,000 and 1,400 MW. The plant will operate on natural gas, providing flexible, low-carbon electricity to Morocco’s growing grid.
Beyond gas-fired generation, the initiative prioritises renewable energy and water security. Dedicated joint ventures will establish green energy-powered desalination plants in regions including Oriental, Souss-Massa, Tanger, Tan-Tan, and Guelmim. These facilities aim to deliver up to 900 million cubic meters of freshwater annually, helping to alleviate Morocco’s mounting water stress.
The programme also includes major transmission and water infrastructure components. A 3,000 MW high-voltage direct current (HVDC) electricity corridor will link southern and central regions, while water transfer infrastructure will connect key reservoirs, including Garde Sebou, Sidi Mohammed Ben Abdellah, and Al Massira, to ensure reliable water supply for households, agriculture, and industry.
“This partnership represents a milestone in regional collaboration for sustainable energy and water solutions,” said a senior official at Taqa Morocco. “By combining expertise, financing, and strategic assets, we are positioning Morocco to meet its energy and water needs in a green, efficient, and resilient manner.”
The Mohammed VI Investment Fund and Nareva Holding stressed that the venture aligns with Morocco’s broader climate and development goals. Green power generation will underpin desalination operations, ensuring that new water supplies do not exacerbate the country’s carbon footprint.
Morocco’s Competition Council has received formal notification of the concentration operations, marking the start of regulatory review for what analysts describe as one of the country’s most consequential infrastructure deals in decades. Observers note that the combination of electricity generation, renewable energy, and water transport infrastructure is likely to set a new benchmark for public-private partnerships in the region.
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Energy experts said the project could significantly enhance Morocco’s electricity reliability and water security. By increasing low-carbon electricity capacity and linking key water reservoirs, the partnership is expected to support economic development, industrial expansion, and climate adaptation strategies in regions most affected by water scarcity.
“The integrated approach to energy and water management is particularly important for Morocco, where both sectors face growing demand and climate-induced pressures,” said Rabat-based analyst Amal El Fassi. “This collaboration with the UAE demonstrates a model for combining strategic foreign investment with national development priorities.”
Construction on Tahaddart 2 & 3 is expected to begin following completion of regulatory approvals, while renewable and desalination projects are slated for phased development across southern and northern regions. Once operational, the partnership could supply flexible, low-carbon electricity to millions of Moroccans and provide sufficient desalinated water for urban, agricultural, and industrial users.
The Morocco-UAE initiative reflects a broader trend in the MENA region, where countries are increasingly linking energy and water infrastructure to tackle climate challenges and promote sustainable economic growth. Analysts say the deal also strengthens diplomatic and economic ties between Morocco and the UAE, highlighting regional collaboration as a pathway to resilience in the face of energy and water pressures.
