Khalladi wind farm – pioneering private wind energy in Morocco
Context
By the end of 2014, Tom Teerlynck was mandated to lead the development of ACWA Power’s first wind power project—both in Morocco and across the company’s global portfolio. In alignment with Morocco’s national energy transition strategy, ACWA Power aimed to develop a 120 MW wind farm in the Rif Mountains near Tangier, taking advantage of one of North Africa’s most reliable wind corridors.
Khalladi was more than a first—it was a trailblazer. The project became one of the first privately developed wind farms in Morocco under Law 13-09, a regulatory framework enabling private producers to sell electricity directly to industrial clients via the national grid. While such frameworks are common in deregulated markets, this was a pioneering move in a country where the national utility was not only a system operator but also the de facto regulator—and where private investment in power was still viewed with skepticism.
The project required meticulous regulatory navigation, creative grid integration, and a bespoke commercial strategy focused on Morocco’s industrial sector, particularly cement and manufacturing companies seeking to decarbonize and lower energy costs.
Steep hills and difficult access routes created significant logistical challenges, requiring strong cooperation with local authorities. Additionally, the region was densely populated with dispersed villages. Building the wind farm and its transmission line required securing over 70 individual land plots, alongside managing a demanding environmental and social impact assessment and addressing community concerns.
Structuring the commercial side was equally complex. The project required tailored Power Purchase Agreements (PPAs) with multiple industrial off-takers—contracts that had to satisfy both lenders’ expectations for bankability and clients’ demand for pragmatic, commercial simplicity.
It was also the first non-turnkey project developed by ACWA Power, requiring the company to manage multiple construction and supply contracts itself—a major shift from the traditional EPC model.
Despite these layers of complexity, the project reached financial close in 2015 and commenced operations by the end of 2017, financed on a non-recourse basis by EBRD, BMCE (a Moroccan commercial bank), and the Climate Investment Funds.
Approach
To deliver this landmark project, Tom deployed a tailored, deeply engaged, and principled approach:
Strong personal involvement, leading structuring, negotiations, development, and contributing directly to financing discussions.
Daily coordination with government entities, including the national utility, to resolve obstacles and move the project forward.
Hands-on relationship management with industrial off-takers, ensuring continued commitment through long development cycles.
Active engagement with local communities, addressing land access, social impact, and community opposition.
Strict interface structuring across all construction and supply contracts to ensure performance despite the absence of a turnkey setup.
Creative and balanced PPA structuring, reconciling lenders’ need for robust agreements with off-takers’ expectations for simplicity.
Internal alignment within ACWA Power, navigating organizational firsts: first wind project, first merchant structure, and first non-turnkey development.
Immediate crisis response, ensuring swift resolution of issues with stakeholders or counterparties throughout the development process.
Calm perseverance, sustaining momentum through regulatory uncertainty and on-the-ground complexity.
Impact
As the lead on structuring and executing the Khalladi Wind Power Project, Tom played a pivotal role in delivering ACWA Power’s first wind investment, a project that became a strategic milestone for the company and a benchmark for private renewable energy development in Morocco.
Impact on ACWA Power
Positioned the company as a credible player in wind energy, expanding its footprint beyond thermal and solar assets.
Enabled internal capability-building in delivering complex infrastructure under a non-turnkey structure.
Introduced and executed a rare multi-offtaker model, enhancing commercial and credit structuring expertise.
Strengthened ACWA Power’s reputation with DFIs, commercial banks, and host governments.
Provided a foundation for replicating similar wind and hybrid structures in other emerging markets.
Impact on Morocco
Demonstrated that large-scale, unsubsidized renewable energy projects could be delivered by the private sector under Law 13-09.
Diversified the country’s power market by engaging corporate offtakers beyond the state utility.
Supported Morocco’s clean energy transition with 120 MW of wind capacity.
Contributed to local job creation and economic activity, with specific attention to community-sensitive engagement in the project area.
Sent a strong signal to international markets: Morocco was ready for bankable, investor-led renewables with robust governance and execution.
Fact Sheet
Client
ACWA Power
Role
Leading the full development of the project, including negotiation of all agreements, stakeholder alignment, and crisis management.
Timeframe
2014–2015
Investment Value
USD 175 million
Power Capacity
120 MW
Finance Institutions Involved
EBRD, BMCE (Moroccan commercial bank), Climate Investment Funds
Links
https://www.acwapower.com/news/khalladi-wind-farm-takes-off/