A Japanese company that has invested in Morocco’s power sector for more than a decade is now looking at new renewable energy projects. Mitsui & Co wants to invest more in wind and solar power and is also watching opportunities in green hydrogen and ammonia.
The company sees Morocco as one of the most promising energy markets in Africa. Political and financial stability, strong wind and solar resources, and easy access to Europe are among the main reasons.
Mitsui first entered the Moroccan energy sector in 2011. It worked as an engineering, procurement and construction contractor on the Jorf Lasfar thermal power project.
The company later became a direct investor in two major power projects: the Safi thermal power plant and the Taza wind farm.
The Safi plant was developed with Moroccan company Nareva and French group Engie. The project cost about $2.6bn and started operating in 2018.
The plant has a total capacity of about 1,400 megawatts. It uses ultra-supercritical technology, which makes coal power generation more efficient and reduces emissions compared with older coal plants.
Mitsui says the project was the first in Africa to use this technology.
The company also owns 40% of the Taza wind farm, with France’s EDF Power Solutions holding the remaining 60%.
The wind farm has a capacity of 87.2MW and cost about €140m. Construction started in 2020 and the plant began operating in 2022.
The project sells electricity to the National Office of Electricity and Drinking Water (ONEE) under a long-term contract.
Mitsui’s share of the plant’s net capacity was about 35MW as of 31 March 2026. Its share of the Safi plant was about 462MW.
More focus on renewables
Mitsui is now putting more attention on renewable energy.
The company sees a strong business case in Morocco because the country imports much of the coal and gas it needs, while having good conditions for wind and solar power.
Renewable sources made up about 46% of installed electricity capacity in April 2025, according to figures cited by JETRO.
That represented about 5,500MW out of a total installed capacity of 12,017MW.
The government wants renewables to account for more than 52% of installed electricity capacity by 2030. Current growth means the target could be reached earlier.
Projects developed by ONEE and the Moroccan Agency for Sustainable Energy (MASEN) are also creating opportunities for private investors.
Wind power still carries risks. A project’s financial performance depends on how much electricity its turbines produce.
Mitsui studies wind speed and consistency before deciding whether to invest. It uses data from ONEE and carries out its own studies.
The company also signs maintenance agreements with turbine manufacturers to reduce the risk of poor turbine performance.
Why Mitsui likes Morocco
Political and financial stability are major factors behind Mitsui’s investment plans.
The company considers Morocco one of the few African markets where investors can more easily access international financing.
A stable political environment also helps reduce the risk of problems with long-term contracts.
Mitsui has also welcomed changes to the investment system, including reforms to the investment charter and a stronger role for agencies that attract foreign investors.
Currency stability is another factor.
The dirham is considered relatively stable compared with several other African currencies. The exchange-rate system is based on a basket made up of 60% euro and 40% dollar.
Investors still face some problems.
Moving money out of the country can take time because of paperwork, checks and approvals involving banks and foreign-exchange authorities.
Finding land can also be difficult for large projects. Complicated ownership and the need to relocate residents can delay some investments.
Hydrogen and ammonia
Mitsui plans to keep investing in electricity generation while giving more attention to renewable energy.
Green hydrogen and ammonia are also on the company’s radar.
Large commercial projects in these areas are unlikely to happen immediately. Mitsui is particularly interested in southern areas, where strong winds and high levels of sunlight could support large renewable energy projects.
The government is also trying to attract investment in green hydrogen through its “Morocco Offer”, which covers hydrogen and products made from it.
Japanese companies are showing greater interest in the sector.
JETRO organised a renewable energy mission to Morocco in May. The mission brought 16 Japanese companies and organisations and 19 representatives to meet 11 Moroccan ministries, institutions, companies and universities.
Mitsui now sees Morocco as “one of the very promising markets in Africa”.
The company plans to keep looking for renewable energy projects while studying longer-term opportunities in green hydrogen and ammonia.
