Case McKinsey Morocco-Loic

Subject: The Moroccan Ministry of Energy is calling on you because Morocco is experiencing power
cuts and there are demonstrations in the streets. The ministry would like you to help them stop
the demonstrations by finding a solution to the problem.

Clarifying questions :
-Is the aim to solve the electricity problem? YES

-Is the electricity problem in the whole country or only a few areas? → All over the country

-What are the different electricity suppliers? → The company Elec Distribution

-Do we have several types of energy that generate electricity? → Solar at 5%, Hydro at 35%, Wind
at 5% and Thermal at 55%.

Structure: Solving the electricity problem in Morocco

1) Assessment of electricity demand in Morocco (Demand

• Household consumption
• Consumption of the Public Service
• Business Consumption

2) Government assessment of electricity generation (Supply) →

• Not enough electricity produced?

o Not enough sources of production
o Low effective production Malfunctioning
• 2) Poorly distributed electricity?
o Electricity transmission cable ) Not enough equipment 2) Does not work well
(badly used or old)
o Connection ) Not suitable 2) Does not work properly

1) Assessment of electricity demand in Morocco (Demand)

• Household consumption= (Moroccan population/#people per household)*penetration rate
(=% of households with access to electricity)*average household consumption
o Moroccan population = 36M
o #people per household=4
o Penetration rate= assume 100% even if this is not the case
o Average consumption of a household (Do brainstorm) = 5 lamps that consume
10W each, refrigerator 100W, household appliances 200W and TV 50W 400W on
average
The average consumption of Moroccan households is 3.6 GW

• Consumption by companies= 2000 MW

• Utility consumption= 2000 MW
TOTAL ELECTRICITY DEMAND IN MOROCCO IS 7.6 GW
2) Evaluation of electricity production (Supply)
How many GW does the Moroccan government produce? 7.5 GW

Do thermal power plants have problems? 1/3 of the thermal power plants are defective but also
15% of the hydro power plants are no longer usable due to drought

Thus the production today is : 7.5*5% + 7.5*55%*(1-1/3) + 7.5*35%*(1-15%) + 7.5*5%=5.6 GW 30%

difference with normal production

 WE REALISE THAT THE MOROCCAN GOVERNMENT PRODUCES LESS THAN THE MOROCCAN
POPULATION DEMANDS AND EVEN IN FULL OPERATION

Solution:

1. Increasing electricity production

• Repairing thermal reactors or buying new ones
• Investing in other solar and wind sources
2. Lowering the population's consumption
• Distribute and promote low energy appliances
• Enabling households to obtain solar installations directly on their roofs
3. Risks
• Population does not support low energy appliances and solar panels (too
expensive, theft etc.)
• The population is growing and more and more households will have access to
Electricity A long-term strategy is needed