Renewables gain ground in water desalination

From the newsletter

A new report from Renub Research says Morocco’s desalination market will more than double to about $850 million by 2033. This growth is expected to increase demand for renewables projects as the country expands its use of solar and wind to power new desalination plants, cutting costs and easing the sector’s heavy energy load.

• Climate stress and shrinking water reserves are driving countries toward desalinating water from lakes, seas and underground sources. Since it is energy-intensive, using renewables helps cut costs and reduce grid strain.

• North African countries are leading this shift. Morocco aims to produce 1.7 billion cubic metres of desalinated water a year by 2030. Reaching that level will require at least 500 MW of steady baseload power.

More details

• Water scarcity is expected to intensify across the world, and many African countries that lack the technology and capital for large desalination projects will face the greatest strain. North African countries will be among the hardest hit, but they are also better prepared than most. Morocco and Egypt have developed clear strategies, pipelines of projects and strong international partnerships to support long-term investment in desalination infrastructure.

• The report by Renub Research projects an annual growth rate of 8.74% in Morocco’s desalination market, a figure that could rise even further as climate change accelerates water stress. Morocco’s government is already moving quickly, with plans to produce about 1.7 billion cubic metres of desalinated water a year by 2030. 

• Desalination, however, is highly energy-intensive. Modern seawater reverse osmosis systems typically require 3–5 kWh of electricity for every cubic metre of freshwater produced. For Morocco’s 2030 target, that translates to 4.3–8.5 TWh of electricity each year, or a continuous demand of 500-1000 MW. Meeting this load with fossil fuels would be costly and unsustainable, which is why renewable energy is now essential for large-scale desalination.

• Several major projects already illustrate this shift. Morocco is developing what is expected to be the world’s largest renewable-powered desalination plant, designed to produce 822,000 m³/day using 360 MW of dedicated wind power. In May, the government signed a landmark $14 billion investment pledge from uae that will cut across sectors including energy, water and transport. The deal saw four projects collectively producing 900 million m³ of water annually. These facilities will run entirely on renewable energy.

• Green hydrogen ambitions are adding further momentum. Producing one kilogram of hydrogen requires around 10 litres of purified water and 45–55 kWh of electricity. As countries such as Morocco and Namibia pursue hydrogen export plans, they will need more desalination capacity and far more renewable power. This combination is transforming coastal regions into emerging energy hubs where water production, renewables and hydrogen systems are developed together.

• Beyond North Africa, West Africa is also making major moves. Senegal has partnered with ACWA Power to develop the region’s largest desalination plant, valued at $800 million and expected to be fully operational by 2031. The size of the renewable power plant that will support it has not yet been disclosed. 

• In the south, Angola is preparing to build a new desalination facility through a joint venture between the UAE’s AMEA Power and Spain’s Cox, with investment exceeding $200 million. Desalination is also spreading on a smaller scale along other African coastlines. In Kenya, dedicated plants have been set up to support coastal communities where saltwater intrusion has made groundwater increasingly unreliable.

Our take

• As energy costs dominate desalination budgets, solar, wind and hybrid systems will increasingly be built alongside new plants, making renewables the default power source for future desalination projects. 

• Countries pursuing green hydrogen will cluster desalination facilities, renewable energy generation and electrolysers near ports, with Morocco and Namibia emerging as early leaders in this model.

• Water is also becoming a national security priority. As scarcity worsens, desalination infrastructure is set to become one of the fastest-growing sectors, opening investment opportunities across the value chain, from technology manufacturing to large-scale project development.