KfW supports energy turnaround in Morocco

• KfW concludes additional loan agreements totalling EUR 654 million for the world’s largest solar complex currently under construction in Ouarzazate
• Environmentally friendly electricity supply for 1.3 million people

KfW Development Bank has concluded additional loan agreements totalling EUR 654 million for the Ouarzazate solar complex in south-east Morocco on behalf of the Federal Ministry for Economic Cooperation and Development (BMZ) and the Federal Ministry for the Environment (BMU). The other financing parties are Agence Française de Développement (AFD), the African Development Bank (AfDB), the European Investment Bank (EIB), the European Union (EU) and the World Bank. The loan agreements that have now been signed for the second and third power plants in the solar complex – Noor II and III – total EUR 1.4 billion.

"The realisation of this power plant complex will allow Morocco to make a breakthrough in the development of a low-carbon and climate-friendly future technology and at the same time reduce the country's heavy dependence on imported energy. By implementing the ambitious energy plans, the country is setting itself up as a pioneer in the region. It is the country's goal to generate 42% of its power generation capacity from renewable energies by 2020. The aim of the Moroccan solar plan is to construct solar power plants with a total capacity of 2,000 MW by 2020. The Moroccan Agency for Solar Energy (MASEN) is implementing this ambitious plan in exemplary fashion," said Dr Norbert Kloppenburg, Member of the Executive Board of KfW Group.

The first power plant – Noor I – has a 160-megawatt capacity and will be connected to the power grid in October 2015. The construction of the Noor II and III power plants is scheduled to begin in April 2015. The Ouarzazate location will have a total capacity of some 560 megawatts and is thus the largest solar complex under construction in the world. The total costs amount to approximately EUR 2.2 billion, of which KfW has provided EUR 829 million, making it the largest financier (almost 40% of the total amount).

The power plant complex will generate electricity for some 1.3 million people and will emit approximately 800,000 tonnes less CO2 per year than traditional power generation methods. Three innovative technologies are to be used – parabolic troughs, a solar tower and photovoltaics. Furthermore, three of the power plants will feature a salt storage tank which allows electricity to continue to be supplied at night.

The support from Germany is making an important contribution to the development of renewable energies in Morocco. In much the same way as the financing of a number of wind parks is tapping into the tremendous potential of the country's wind power, the pioneering work being carried out now is aimed at enhancing the potential of solar energy.

Further information on KfW Development Bank is available at: www.kfw-entwicklungsbank.de.