A Sustainable Partnership: How North Africa Supports Europe’s Renewable Energy Drive – Report

Europe is making significant strides toward a greener power sector, with North Africa emerging as a crucial partner in this transition. As Europe boosts its renewable energy sources, Rystad Energy projects that by 2035, 73% of the continent’s electricity will come from clean sources, including potential imports of up to 24 gigawatts (GW) from North Africa through subsea interconnectors.

Currently, Morocco is the only African country linked to Europe via two high-voltage cables, each with a capacity of 700 megawatts (MW). Plans for a third cable are in progress, which will be enhanced by projects like the Xlinks UK-Morocco initiative. This ambitious project aims to create 11.5 GW of renewable energy capacity, along with 22.5 gigawatt-hours (GWh) of battery storage and a 3.6 GW subsea connection between the UK and Morocco. Other initiatives, such as the GREGY project between Greece and Egypt and the ELMED-TUNITA project connecting Tunisia and Italy, are also gaining traction, attracting considerable investment from various stakeholders.

With these developments, North Africa will need to deploy around 7.2 GW of interconnector capacity and 23 GW of renewable energy capacity to meet European demand. This includes 13.5 GW from solar power and 9.5 GW from onshore wind, requiring over $27.5 billion in investment. If these projects operate at full capacity, they could provide approximately 55 terawatt-hours (TWh) of electricity annually, accounting for about 1.6% of Europe’s current energy generation and potentially replacing 6% of its fossil fuel-based power.

North Africa’s renewable energy resources are well-aligned with Europe’s goal of reducing its dependence on Russian natural gas. The geographical closeness of these regions fosters a natural trade relationship, paving the way for large-scale solar and wind projects as well as subsea cables across the Mediterranean. The seasonal variations in wind and solar energy generation can help balance the power supply, further diversifying Europe’s energy sources and lowering fossil fuel reliance.

Nivedh Das Thaikoottathil, a Senior Analyst at Rystad Energy, noted that North Africa has become a rising force in the energy transition within the Mediterranean. The region currently generates over 400 TWh of power and boasts the highest electricity access rates in Africa. North Africa is also advancing its onshore wind and solar photovoltaic (PV) projects, with over 350 GW in various stages of development. With an installed capacity exceeding 8 GW from both solar and wind, the region is well-positioned for renewable energy growth, especially as the cost of producing electricity from these technologies has dropped significantly over the past decade.

Some of the largest PV installations globally are in North Africa, including Egypt’s Benban solar complex, the largest solar project on the continent. This massive installation features 41 separate solar facilities spread over 37 square kilometers. Morocco’s Noor Ouarzazate solar complex was once the world’s largest solar thermal power plant, using advanced technologies to harness solar energy effectively. Egypt is home to major wind projects like the Gabal El Zeit and Zaafarana wind farms.

Despite its potential, North Africa faces challenges in completing renewable energy projects due to supply chain issues. The region relies heavily on imports for solar and wind technologies, exposing it to risks and price fluctuations. The need for high-voltage direct current (HVDC) cables further complicates matters. Although Europe currently produces a significant portion of these cables, demand is projected to outstrip supply by 2030, leading to potential delays and requiring increased production capacity.

In addition to supply chain hurdles, financing issues may also slow project timelines, especially for initiatives still in the development phase. Collaboration among suppliers and contractors is essential for timely cable production and installation, with overlapping development of solar and wind projects helping to mitigate delays and costs.