LISBON/RABAT, July 20, 2026 (Reuters) – Portugal and Morocco have announced a joint bid to secure European Union funding for a long-discussed electricity interconnector between the two continents, a project that has gained new urgency following a massive blackout that exposed the Iberian Peninsula’s energy isolation last year.

In a coordinated push, the two countries will formally ask the European Commission to classify the planned power link as an Important Project of Common European Interest (IPCEI) , a designation that would unlock access to EU funding and accelerate regulatory approval. At the same time, they are launching a parallel process to gauge private-sector interest from grid operators and utilities, aiming to structure the project without overburdening national budgets or consumers.

The announcement follows a meeting in Lisbon between Portugal’s Energy Minister Maria da Graca Carvalho and Morocco’s Energy Transition Minister Leila Benali. « We have decided to first talk with the EC to see its interest in considering this as an important European project, » Carvalho told reporters, adding that the two-track approach would seek funds from the EU’s Connecting Europe facility while also testing investor appetite.

A Project Revived by Crisis

The proposal, first studied in 2018, lay dormant for years but was resurrected after an April 2025 blackout that plunged Spain and Portugal into darkness, highlighting the peninsula’s vulnerability. Iberia currently has only 3% of its electricity capacity connected to the rest of Europe—far below the EU’s target of 15% interconnection by 2030.

A subsea or overland link via Spain would provide Portugal with an alternative power source beyond its sole current connection to Spain, enhancing security during disruptions. For Morocco, it would create a direct export route to European markets, strengthening its role as a renewable energy hub.

Cost and Affordability Key

Ministers stressed that cost control is central to the project’s viability. « We don’t want to overcharge our contributors or our consumers, » Carvalho said, while Benali emphasized the goal « to ensure that we decrease costs, especially the affordability of energy access » for both populations and industries.

Technical details remain undecided, including whether the link would be a direct subsea cable between Portugal and Morocco or utilize existing Spanish infrastructure, which already connects to the North African country.

The next step is a dialogue with EC Executive Vice-President Teresa Ribera to gauge Brussels’ appetite for backing a Europe-Africa energy bridge. Should the IPCEI status be granted, it could unlock significant funding and streamline permitting, positioning the project as a cornerstone of transcontinental renewable energy cooperation.

Source : Reuters

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