Feasibility study for financing energy efficiency in Moroccan SMEs

Jamaa el Fna (also Jemaa el-Fnaa, Djema el-Fna or Djemaa el-Fnaa) is a square and market place in Marrakesh's medina quarter (old city). Marrakesh, Morocco, north Africa. UNESCO Heritage of Humanity.

Due to its considerable progress in economic and social development in the last decades, Morocco’s energy demand has not stopped from rising. Poorly equipped with own conventional energy resources, the country depends to a very large extend on energy imports from abroad. In order to secure its energy supply, to keep future energy related costs affordable and to combat climate change, the kingdom implemented a national energy strategy focusing on the increased application of energy efficiency measures and renewable energies. According to Morocco’s Nationally Determined Contributions (NDC), the industrial sector has the greatest investment potential for energy efficiency due to its high share of the national energy consumption and its considerable energy savings potential.

The German development bank KfW therefore aims to support small and medium-sized enterprises (SMEs) in Morocco in their efforts to implement energy efficiency measures. The envisaged financing programme consists of a loan component and a technical assistance component. It iss planned to channel the financial support through Fineá, a subsidiary of the Moroccan public CDG Group (Caisse de Dépôt et de Gestion), which is specialised in the support of SMEs, particular through credit lines in partnership with Moroccan banks.

KfW and Finéa commissioned adelphi, in partnership with Africa Climate Solutions (Morocco) and Climate & Energy Solutions (France), with the development of a feasibility study of this financing programme. In the framework of this study, adelphi carried out an analysis of the market potential of energy efficiency in the secondary (industry) and the tertiary sector (hotels). The financing conditions were assessed with the help of interviews with interested local banks, CDG subsidiaries and other relevant public stakeholders in Morocco. Furthermore, the project team conducted walk-through energy audits of nine selected pilot projects in other subsidiaries of the CDG group. Based on these assessments, the project team developed recommendations for an adjusted financing programme and the accompanying technical assistance.