African Development Bank (AfDB) has provided a $965,000 grant to Morocco’s Société d’Ingénierie Energétique (SIE) as the country seeks to boost its energy sector.
The grant was provided through AfDB Sustainable Energy Fund for Africa (SEFA) to support SIE’s transition into the first Super Energy Service Company (ESCO) initiative in Africa.
Unlike other countries in North Africa, Morocco does not have its own oil resources, making the country the largest energy importer in the region.
The Maghreb nation, it is understood, is faced with the challenging task of meeting rising local demand while keeping its import bill under control.
The country’s government, according to local media, is pursuing an ambitious, cost-effective energy transition, aiming to endow the country with a sustainable, competitive and secure energy sector.
‘This support from the African Development Bank will enable the operationalisation of the new SIE as a Super ESCO, thus creating a model well aligned with the needs of the country’s energy efficiency sector’, the SIE Chief Executive Officer, Ahmed Baroudi, said in a statement.
Morocco aims to meet its energy needs by combining large-scale energy efficiency strategies and renewable energy investments, according to the statement.
‘Super ESCOs are vehicles for channelling funds into public sector energy efficiency investments such as hospitals, schools, and street lighting, laying the foundation for private investment later in the commercial and industrial sectors’, the statement added.
Officer in Charge at the North Africa Regional Development and Business Delivery Office of the AFDB, Brice Mikponhoue, said the grant will provide SIE with operational tools to develop a pipeline of bankable energy efficiency investment projects.
‘The implementation of Super ESCOs on the continent will gradually contribute to the expansion and strengthening of the energy efficiency financing ecosystem’, Mikponhoue said.
Photo source: Mike McBey