Morocco to open Africa's first wind blade factory

From the newsletter

Morocco is about to launch Africa's first wind turbine blade manufacturing plant. The plant was built by Chinese manufacturer Aeolon Technology for $340 million. Construction work has taken just over a year. It will have an annual production capacity of 600 sets of turbine blades for local use and export markets in neighbouring regions.

• Morocco is Africa's third-largest wind energy producer, after South Africa and Egypt. The country's expansive coastline, stretching 3,500 km, has strong winds suitable for power generation.

• The country's labour costs are low compared to many other countries, making it an attractive location for businesses seeking to reduce their manufacturing costs. 

More details

• The project is built over a 50-hectare area at an industrial zone near the Nador West Mediterranean Port. It is expected to employ at least 3,320 people. Morocco is making use of its strategic location to woo investors and expand its manufacturing sector.

• Over the past few years, the country has seen increased investments in electric vehicle production, battery manufacturing, and now wind turbine blade making. It has acquired a reputation for "firsts" in Africa. A new battery plant will produce all battery-related components, a first for Africa.

• The country has revamped its policies, streamlining investments in the various sectors. The so-called "Morocco Offer," for example, has land set aside by the government for green projects such as green hydrogen. The government provides direct subsidies of up to 30% of total investment costs. New companies and those operating within designated zones are eligible for tax exemptions during their initial years of operations.

• While wind power generation in Africa hasn't yet reached its full potential, with only a few countries having implemented projects, there's significant room for growth. Currently, around 9,300 MW of installed capacity exists, with North and southern African countries accounting for over 80% of the total. However, the potential for wind energy, especially along African coastlines, is immense.

• Manufacturing of renewable technologies is not something completely new in Africa. Solar manufacturing began in the early 2010s, with countries like Kenya, South Africa, Ghana, and Egypt rolling out initial projects. Despite this early start, the scale of solar manufacturing isn't yet commercial enough to meet demand. Most of the early manufacturing efforts targeted residential solar use rather than large-scale commercial and industrial applications. 

• Unlike solar panels, wind turbines face serious challenges, especially in transportation due to blade size. They are costly, time-consuming, and require special infrastructure for transportation, especially in inland areas. Most road infrastructure cannot support the transport without modification.

• The location of the plant in Morocco is strategic as it greatly cuts down the transport distance. Ports for key export markets, mainly in Europe and the Middle East, are now just a few kilometres away. This will cut costs, making turbines more affordable.

Our take

• Morocco is setting the blueprint for an industrialised Africa. The policy support and its focus on infrastructure are making private sector investments less risky and less costly. African governments should take a leaf out of their book.

• Wind turbine technology costs have been coming down, and now this plant could make it even cheaper, considering the reduction in transport costs. Morocco and many other African countries have a chance to grow their wind generation capacity.

• The scale of this project is different from what we witnessed in solar manufacturing in other African countries. It was small, targeting domestic demand, while this is targeting both export and local markets, which offers better economies of scale.