Portugal Seeks EU Backing for Morocco Power Cable Project
Portugal's Environment and Energy Minister Maria da Graça Carvalho confirmed that the government is pursuing European Union funding and private-sector investment for an undersea electricity cable linking Portugal to Morocco. The project aims to enhance grid security and explore options for importing renewable energy.
Why This Matters:
• Grid resilience: The April 2025 grid failure exposed Portugal's vulnerability when isolated from external electricity sources. A Morocco connection would provide an additional supply route during emergencies.
• Renewable energy potential: Morocco possesses significant solar and wind capacity that could supply clean power to Portugal, while Portuguese operators export excess generation southward.
• EU funding opportunity: The government is exploring funding through the European Union's infrastructure programs, though specific budget allocations remain under discussion.
The Project Scope and Cost Evolution
During a recent meeting with Morocco's Energy Transition Minister Leila Benali in Lisbon, Carvalho confirmed that Portugal's REN grid operator and Morocco's ONEE electricity authority are collaborating on technical specifications for the undersea cable. Technical details including exact routing, capacity, and distance are still being finalized through ongoing bilateral discussions.
Cost estimates have evolved over time. A 2018 feasibility study indicated approximately €800 million, while a 2022 assessment suggested around €650 million. However, Carvalho emphasized that final costs remain uncertain pending completion of detailed engineering studies. "Costs have evolved significantly in recent years," she told reporters in Lisbon, noting that inflation and supply-chain conditions will influence the ultimate figure.
The government is also considering whether Portugal could leverage the existing Spain-Morocco interconnection to optimize construction costs, given the interconnected nature of Iberian power systems.
Why the Timing Matters
The April 2025 blackout provided an urgent reminder of the importance of grid diversification. When cascading faults knocked out power across the region, Spain was able to draw emergency supplies from France and Morocco to restart critical infrastructure. Portugal, with fewer external connection options, faced longer restoration times. "If we had a Morocco link, that would have been one more source of electricity, and recovery would have been faster," Carvalho explained.
Beyond immediate resilience, the project aligns with broader European efforts to integrate renewable energy across the Mediterranean region. Morocco has been expanding utility-scale renewable capacity, creating opportunities for cross-border clean energy flows.
Funding and Next Steps
Carvalho's ministry is planning a meeting with European Commission Vice President Teresa Ribera to explore inclusion in EU infrastructure funding programs. The Portuguese government intends to issue a market sounding to gauge private-sector interest in co-financing arrangements that would manage consumer costs and public expenditure.
The government and Morocco plan to present an updated project dossier by late 2026, with further discussions expected in early 2027. The bilateral agenda also includes cooperation on renewable energy development and critical minerals supply.
What This Means for Residents
For households and businesses, the practical impact will depend on three key factors: final project costs, how funding is divided between public and private sources, and whether new import capacity ultimately reduces wholesale electricity prices.
The grid-security benefit is clearer: adding another major supply route would reduce Portugal's dependence on Spanish interconnections during emergencies, potentially shortening recovery times for hospitals, data centers, and industrial facilities during outages.
Looking further ahead, improved electricity infrastructure could support Morocco's emerging green hydrogen sector, potentially attracting hydrogen-import facilities and related logistics investments to southern Portuguese ports.
A Framework Renewed
The cable initiative revives discussions first outlined in 2016, when the Portuguese government and Morocco agreed to explore electricity and natural gas cooperation. That early phase produced feasibility studies but no binding commitments. After years of limited progress, the file was reopened in May 2025, accelerated by lessons from the April blackout.
Both governments emphasize shared interests in energy affordability and climate resilience. Political commitment appears solid on both sides, though final approval will depend on European Commission decisions regarding infrastructure funding and private-investor assessment of commercial viability.
For now, the undersea cable project has progressed from feasibility study to active diplomatic priority—the most concrete advancement in efforts to deepen Iberian-Moroccan energy cooperation.
