Portugal and Morocco have agreed to develop an electricity interconnection following discussions between their energy ministers on renewable energy and mining cooperation, according to the Portuguese Trade and Investment Agency (AICEP) (AICEP press release, 21/07/2026).
According to AICEP, “Both countries will apply to the European Commission for funding and seek to have the interconnection designed as an Important Project of Common European Interest (IPCEI), a framework that provides access to European Union co-financing”.
To avoid placing the financial burden on consumers and taxpayers, Portugal and Morocco are also considering launching a call for expressions of interest aimed at private sector participants, including energy companies and electricity distributors, with private investment expected to complement EU funding. The next steps include a meeting in Brussels and a Portugal-Morocco summit, which is expected to take place in early 2027.
The project revives plans for a Portugal-Morocco electricity interconnection that were first examined in 2018, when the two countries announced that they would invite bids for the construction of a 1 GW (250 km) undersea power interconnection, then estimated at EUR800m and expected before 2030.
The Iberian Peninsula continues to have limited electricity links with the rest of Europe, with only 3% of its electricity capacity interconnected with neighbouring European countries, well below the European Union’s 15% interconnection target for 2030 (Reuters, 20/07/2026). At present, Portugal is interconnected only with Spain. In early July 2026, a new electricity interconnection between Spain and Portugal, linking northern Portugal with Galicia in north-western Spain, was completed. The project increased cross-border electricity capacity by 1 GW, bringing total capacity to 4.2 GW from Spain to Portugal and 3.5 GW in the opposite direction. Portugal has been a net importer of electricity since 1999, except between 2016 and 2018. Net imports decreased by 11% to 9.3 TWh in 2025 (10.5 TWh in 2024), according to our data (Enerdata Global Energy & CO2 data).
The announcement comes only a few days after France and Morocco launched a call for expressions of interest for an electricity interconnection project linking the two countries as part of broader efforts to strengthen energy ties between Europe and North Africa.