The World Bank has approved US $265M to support the development of the Ifahsa Pumped Hydropower Storage Project in northern Morocco, marking a major step in the country’s transition toward a cleaner and more resilient energy system. The project is among the largest pumped-storage hydropower initiatives currently planned in Africa.
Situated near the city of Chefchaouen, the 300-megawatt facility will operate as a large-scale energy storage system. During periods of strong solar and wind generation, excess electricity will be used to pump water to an elevated reservoir. When electricity demand rises or renewable output declines, the stored water will be released through turbines to generate power, helping maintain a stable and reliable electricity supply.
The project is expected to enable Morocco to integrate at least 1 gigawatt of additional renewable energy into its national grid. It is also projected to replace roughly 3 terawatt-hours of electricity currently produced from fossil fuels each year, preventing an estimated 1.7 million tonnes of carbon dioxide emissions annually. In addition, the initiative is expected to attract approximately US $1bn private investment to support the country’s expanding renewable energy sector.
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Benefits
Economic benefits are also anticipated. Construction activities are expected to create around 820 direct jobs each year, while the increased deployment of renewable energy is likely to generate further employment opportunities across related industries. Access to cleaner and more dependable electricity is also expected to improve the competitiveness of Moroccan businesses in international markets where demand for low-carbon production continues to grow.
The financing package includes resources from the World Bank’s International Bank for Reconstruction and Development (IBRD), the Clean Technology Fund, and the Livable Planet Fund. The project is being co-financed by the African Development Bank and will be implemented by Morocco’s national electricity and water utility, ONEE.
According to the World Bank, the initiative highlights the value of collaboration between international financial institutions and national authorities in delivering large-scale clean energy infrastructure. The project is expected to strengthen Morocco’s electricity network while supporting the country’s long-term climate and sustainable development goals.
