Industry Trend Analysis - Desalination Project Cements Positive Renewables Outlook - AUG 2017

BMI View: The project finance closure of the first phase of what will be the world ' s largest desalination plant fuelled by renewable energy sources cements Morocco ' s status as one of the most attractive market s in the Middle East and Africa (MENA) in which to develop renewable s projects. A solid structural demand outlook for potable water will continue to offer the necessary commercial rationale to support the development of similar projects in Morocco going forward.

It was announced on July 2, 2017 that Spain-based Abengoa had achieved financial close for the USD309mn first phase of what will eventually become the world's largest desalination plant fuelled by renewable sources (in this case primarily wind) in the Agadir region of Morocco, with financing provided by a consortium including BMCE Bank. This development underscores our conviction that Morocco is set to maintain its status as one of the most attractive markets for both renewable and desalination projects in MENA over our 10-year forecast period, as it combines a positive demand profile for potable water with active government efforts to establish itself as a top investment destination for companies in the wind and solar sectors (see, ' To Maintain MENA Renewables Outperformance, ' August 22, 2016).

Structural Demand Underpinning Commercial Rationale

Morocco Set To Outperform In MENA Renewables
Morocco Renewables Capacity By Type (MW)
e/f = BMI estimate/forecast. Sources: BMI, EIA, IRENA

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