Renewable Energy Adoption and Economic Resilience in Africa: A Case Study of Morocco

Abstract

Morocco faces significant challenges in meeting its rapidly growing electricity demand, which is projected to increase by two to five times by 2030. In response, the country has set ambitious renewable energy targets—aiming for 42% of total installed capacity by 2020 and 52% by 2030. This study examines the relationship between renewable energy adoption and economic resilience in Morocco, in the context of increasing electricity needs and aggressive renewable targets. Employing a Structural Vector Autoregression model covering the period 1980–2024, the analysis reveals that renewable energy investments contribute positively to GDP growth, though their effects on emissions are mixed. While large-scale solar and wind projects have enhanced energy security and job creation, persistent infrastructure deficits and policy shortcomings limit their environmental impact. To ensure sustainable development, policymakers must complement renewable expansion with stricter energy efficiency standards, advanced clean technologies, and robust environmental regulations. Targeted subsidies and integrated planning will be essential to prevent economic growth from undermining environmental sustainability. Immediate action is needed to align Morocco’s energy goals with its climate commitments.