Assessing the competitiveness of renewable energy in Morocco: A comprehensive analysis of power plant electricity production costs

Abstract

This study evaluates the competitiveness of renewable and dispatchable energy sources in Morocco by analyzing the levelized cost of electricity (LCOE) for various power generation technologies. The objective is to identify the most and least competitive technologies by comparing their average electricity production costs. The analysis covers a wide range of power plants, including seven solar plants, ten wind farms, four hydropower stations, three coal-fired plants, four oil-fired plants, and three gas-fired plants. The results show that coal-fired power plants have the lowest LCOE, ranging from 0.02 to 0.2 MAD/KWh, followed by gas-fired plants with a LCOE between 0.05–0.09 MAD/KWh. In contrast, renewable energy sources exhibit higher costs, with wind farms LCOE ranging between 0.17 to 0.74 MAD/KWh, hydropower stations ranging between 0.18 to 0.37 MAD/KWh, and solar power systems ranging from 0.2 to 0.73 MAD/KWh. Oil-fired power plants are the least competitive, with LCOE values ranging from 0.97 to 3.34 MAD/KWh. The analysis reveals that fossil fuel-based power plants LCOE are primarily influenced by fuel and maintenance costs, whereas renewable energy technologies are more dependent on capital expenditures and generation capacity. • Comprehensive LCOE analysis for diverse power generation technologies in Morocco. • Solar and wind technologies show promising cost reductions, but intermittency challenges persist. • Coal-fired plants have the lowest LCOE; oil-fired plants are the least cost-competitive. • Renewable energy competitiveness is influenced by capital costs, not fuel or O&M costs. • Regulatory barriers limit the integration of renewable energy in Morocco's industrial sector.