Power up: Energy trading in the Maghreb

The Maghreb, a region endowed with rich energy resources, stands at a critical juncture. Comprising Algeria, Morocco, Tunisia, Libya, and Mauritania, this region has long operated in silos, focusing on national strategies rather than regional cooperation. Yet, as the world transitions to greener energy sources and faces mounting energy security concerns, the Maghreb’s nations must embrace a new paradigm: increased energy trading.

Historically, the Maghreb has been defined by its disparate energy profiles. Algeria and Libya are energy giants, blessed with vast reserves of oil and natural gas. Morocco and Tunisia, by contrast, are net energy importers, with limited hydrocarbon resources but abundant solar and wind potential. Mauritania, the lesser-known player, possesses significant untapped natural gas reserves and a growing interest in renewables. These complementary assets present an opportunity to develop a regional energy market that could benefit all.

The advantages of increased energy trading within the Maghreb are multifaceted. First, it would enhance energy security across the region. By creating a shared energy market, countries could reduce their dependency on extra regional suppliers, especially as geopolitical tensions threaten global trade. For instance, Morocco could tap into Algeria’s natural gas reserves, while Algeria could benefit from Morocco’s expanding solar energy sector. This interdependence would mitigate the risks associated with reliance on distant suppliers and volatile markets.

Secondly, energy trading would promote economic diversification and stability. Algeria and Libya, whose economies are heavily reliant on hydrocarbons, could diversify their income sources by exporting excess energy to their neighbors. Conversely, Morocco and Tunisia could reduce their energy import bills, freeing up resources for other critical sectors like education and healthcare. A regional energy market would stimulate investment in infrastructure, creating jobs and fostering economic integration.

Moreover, enhanced energy cooperation could accelerate the Maghreb’s transition to renewable energy. The region boasts some of the highest solar radiation levels in the world, particularly in the vast Sahara Desert. Coordinated investments in solar farms and cross-border energy grids could transform the Maghreb into a renewable energy powerhouse, reducing carbon emissions and contributing to global climate goals. The European Union, keen to secure green energy imports, could become a strategic partner, offering financial and technical support.

However, realizing these benefits requires overcoming significant political and logistical challenges. Long-standing political tensions, particularly between Algeria and Morocco, have hindered regional cooperation in the past. Building trust and fostering dialogue will be essential. Additionally, substantial investments in infrastructure, such as cross-border pipelines and power grids, are needed to facilitate energy trading.

Despite these hurdles, the potential rewards of increased energy trading in the Maghreb are too significant to ignore. By leveraging their complementary resources, the Maghreb nations could enhance their energy security, boost economic development, and position themselves as leaders in the global green energy transition. For a region that has historically looked inward, the time has come to embrace regional cooperation as a pathway to shared prosperity.

*Lonzo Cook is a journalist and writer. He spent two decades at CNN in a series of senior editorial and management roles including leading breaking news operations across Asia, the Middle East and Latin America. In addition to writing on international affairs, national security and business, he works with media companies and corporations on how to evolve and create content to stay relevant to key audiences.