Portugal and Morocco Agree to Revive Electricity Interconnection Project

Portugal and Morocco have formally agreed to restart efforts to build an electricity interconnector linking the Iberian Peninsula with North Africa, a strategic project aimed at boosting cross border energy flows, integrating renewable power, and enhancing regional grid resilience. The two governments said they will jointly approach the European Commission to consider the link for EU funding while also courting private investors to help finance construction. 

Why the Project Matters

The interconnector, first studied several years ago and paused in 2022, has gained renewed urgency after a major blackout in Spain and Portugal in April 2025 exposed the Iberian Peninsula’s limited ties to the wider European grid. Officials from Lisbon and Rabat argue the link would diversify supply, lower costs, and enable greater integration of Moroccan renewable energy into European markets, strengthening energy security for both sides. 

Scope and Financing Plans

Portuguese and Moroccan energy ministers said the project will be presented to the European Commission as a candidate for EU support, reflecting its potential role in a broader Europe, Africa energy corridor. At the same time, both governments are exploring public private partnerships to attract commercial capital and accelerate delivery. The revived effort targets improved interconnection capacity and modern subsea transmission technology to handle large volumes of clean power. 

Strategic and Economic Benefits

Officials highlighted several expected benefits:

•    Enhanced grid resilience for Iberia and Morocco. 
•    Greater export opportunities for Moroccan solar and wind power to European markets. 
•    Potential to reduce electricity costs for consumers by widening supply options. 

Analysts say the link could also help the EU meet renewable targets by tapping North Africa’s abundant solar resources, while giving Morocco a stronger role as a clean energy supplier to Europe. 

Next Steps and Timeline

Portugal and Morocco plan to request a joint meeting with the European Commission to evaluate eligibility for EU funding and to outline a roadmap for technical studies, permitting, and investor outreach. If approved and financed, the project would move into detailed engineering and procurement phases, though officials have not yet published a firm construction timeline.