International Consortium Wins Morocco’s ‘Noor Midelt 1’ Solar Deal

Morocco’s Noor Ouarzazate solar plant. (Reuters)
Morocco’s Noor Ouarzazate solar plant. (Reuters)
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International Consortium Wins Morocco’s ‘Noor Midelt 1’ Solar Deal

Morocco’s Noor Ouarzazate solar plant. (Reuters)
Morocco’s Noor Ouarzazate solar plant. (Reuters)

A consortium led by French EDF Renewables won a tender to build an 800 megawatt solar plant near the Moroccan city of Midelt.

The consortium to build the AED7.57 billion ($797 million) plant also includes UAE’s Masdar and Morocco’s Green Energy of Africa.

“We are satisfied with the results of this bid process and confident in the capabilities of this consortium to manage this project, which will constitute a technological break-up project and change the features of Midelt and Ouarzazate cities,” said Mustapha Bakkoury, chairman of the executive management of the Moroccan Agency for Sustainable Energy (Masen), which oversaw the deal.

The project is funded by several international institutions, namely the European Investment Bank, the German bank of KfW, the French Development Agency, the European Commission, the World Bank, the African Development Bank and the Clean Technology Fund.

Dubbed Noor Midelt 1, the plant will use a hybrid system of concentrated solar plant (CSP) and photovoltaic (PV) technologies to produce 800 MW of renewable energy, with a storage capacity of five hours.

The hybrid technology will optimize energy production, leading to competitive pricing (AED0.68 per Kw/hr at peak time).

The project is part of the Noor solar plant project that was launched by King Mohammed VI and will be larger than the already operating 580 MW Noor Ouarzazate CSP plant in southeastern Morocco, which was completed by Saudi ACWA Power, Masen said in a statement.

It is the first phase of a new multi-technology solar module in Midelt and is part of Morocco's ambitious goal to produce 42 percent of its electrical power from renewable energy by 2020 and 52 percent by 2030.

According to the statement, construction will start in autumn 2019. Preliminary infrastructure works in the area have already been completed, including the construction of a 40km road allowing access to the complex, and the installation of a 50km long electric cable.

Moroccan companies carried out the preliminary works, creating over 300 jobs, it noted.



Moody's Upgrades Saudi Arabia's Credit Rating

Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
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Moody's Upgrades Saudi Arabia's Credit Rating

Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters

The credit rating agency “Moody’s Ratings” upgraded Saudi Arabia’s credit rating to “Aa3” in local and foreign currency, with a “stable” outlook.
The agency indicated in its report that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification and the robust growth of its non-oil sector. Over time, the advancements are expected to reduce Saudi Arabia’s exposure to oil market developments and long-term carbon transition on its economy and public finances.
The agency commended the Kingdom's financial planning within the fiscal space, emphasizing its commitment to prioritizing expenditure and enhancing the spending efficiency. Additionally, the government’s ongoing efforts to utilize available fiscal resources to diversify the economic base through transformative spending were highlighted as instrumental in supporting the sustainable development of the Kingdom's non-oil economy and maintaining a strong fiscal position.
In its report, the agency noted that the planning and commitment underpin its projection of a relatively stable fiscal deficit, which could range between 2%-3% of gross domestic product (GDP).
Moody's expected that the non-oil private-sector GDP of Saudi Arabia will expand by 4-5% in the coming years, positioning it among the highest in the Gulf Cooperation Council (GCC) region, an indication of continued progress in the diversification efforts reducing the Kingdom’s exposure to oil market developments.
In recent years, the Kingdom achieved multiple credit rating upgrades from global rating agencies. These advancements reflect the Kingdom's ongoing efforts toward economic transformation, supported by structural reforms and the adoption of fiscal policies that promote financial sustainability, enhance financial planning efficiency, and reinforce the Kingdom's strong and resilient fiscal position.