The World Bank has approved $265 million to support Morocco’s Ifahsa Pumped Hydropower Storage Project, a major renewable energy infrastructure investment designed to strengthen the country’s electricity grid. The 300MW facility will enable Morocco to integrate more solar and wind energy, reduce fossil fuel dependence, improve energy security, create jobs, and support the country’s long-term clean energy transition.
Key Overview
- The World Bank approved $265 million for Morocco’s Ifahsa hydropower project.
- The 300MW facility will support the integration of 1GW of additional renewable energy.
- The project is expected to avoid 1.7 million tonnes of CO₂ emissions annually.
- Construction will generate around 820 direct jobs each year.
- The project is co-financed by the African Development Bank.
Hydropower Storage to Strengthen Morocco’s Clean Energy Grid
The World Bank has approved $265 million to support the Ifahsa Pumped Hydropower Storage Project in northern Morocco, marking one of Africa’s largest clean energy storage investments.
The project will strengthen the reliability and resilience of Morocco’s electricity system by providing flexible energy storage that enables greater integration of renewable energy while improving electricity supply for households and businesses.
Located near Chefchaouen, the project will be implemented by Office National de l’Électricité et de l’Eau potable (ONEE), Morocco’s state-owned electricity and water utility, with additional financing provided by the African Development Bank.
300MW Facility to Support Renewable Energy Growth
The Ifahsa facility will operate as a large-scale pumped hydropower storage plant, effectively serving as a giant rechargeable battery for Morocco’s national electricity grid.
During periods of high renewable energy production, such as when solar and wind generation exceeds demand, electricity will be used to pump water into an upper reservoir.
When electricity demand rises or renewable generation declines, the stored water will be released through turbines to generate electricity and supply power back to the grid.
The 300-megawatt facility will enable Morocco to integrate at least 1 gigawatt of additional solar and wind energy into its electricity system while improving overall grid flexibility and reliability.
According to the World Bank, the project is expected to help unlock approximately $1 billion in private investment in renewable energy.
Reducing Fossil Fuel Dependence
The hydropower storage project will play an important role in reducing Morocco’s dependence on fossil fuel-based electricity generation.
Once operational, the facility is expected to replace approximately 3 terawatt-hours of electricity currently generated from fossil fuels every year.
This transition is projected to prevent an estimated 1.7 million tonnes of carbon dioxide emissions annually while supporting Morocco’s broader climate and energy transition objectives.
The additional storage capacity will also allow greater utilisation of renewable energy resources that might otherwise be curtailed during periods of surplus generation.
Economic Benefits Beyond Clean Energy
Beyond strengthening Morocco’s electricity system, the project is expected to generate substantial economic benefits.
During construction, the World Bank estimates the project will create approximately 820 direct jobs annually, while additional employment opportunities are expected across Morocco’s renewable energy sector as more solar and wind projects are developed.
The increased availability of cleaner electricity is also expected to benefit Moroccan industries by improving access to low-carbon energy sources.
This is becoming increasingly important as international markets place greater emphasis on sustainable production and low-carbon supply chains.
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Supporting Morocco’s Energy Transition
Morocco has accelerated investment in renewable energy as part of its response to climate change, recurring droughts, and increasing pressure on water resources and agriculture.
The country has positioned clean energy as a central pillar of its long-term economic development strategy while seeking to strengthen energy security and reduce greenhouse gas emissions.
According to a recent World Bank report, investments supporting Morocco’s clean energy transition through 2030 could generate approximately 28,000 net jobs annually across the national economy, particularly within agriculture and renewable energy industries.
The report also highlighted the importance of low-carbon electricity for maintaining Morocco’s competitiveness in export markets as international climate regulations continue evolving.
Part of Broader World Bank Climate Support
The hydropower project forms part of the World Bank’s broader support for Morocco’s climate resilience and sustainable development.
Earlier in June, the institution approved a $400 million Morocco Climate & Risk Finance Program aimed at strengthening the country’s resilience against climate, disaster, and cyber risks.
That programme supports investments across renewable energy, energy efficiency, sustainable transport, and water infrastructure.
The latest approval also follows the World Bank’s decision to extend its Climate Change Action Plan, while retiring its previous target requiring 45% of financing to deliver climate co-benefits.
Despite removing the lending target, the World Bank said it will continue supporting client countries based on their individual climate and development priorities.
Outlook
The approval of $265 million for the Ifahsa Pumped Hydropower Storage Project represents another significant step in Morocco’s clean energy transition. By expanding large-scale energy storage capacity, the project will help integrate more renewable electricity into the national grid, strengthen energy security, reduce fossil fuel dependence, and attract additional private investment. As Morocco continues expanding its renewable energy portfolio, projects such as Ifahsa are expected to play an increasingly important role in supporting economic growth, reducing emissions, and improving the resilience of the country’s electricity system.
FAQs
1. What is the Ifahsa Pumped Hydropower Storage Project?
It is a 300MW pumped hydropower storage facility that will store renewable electricity and release it when demand increases, helping stabilise Morocco’s electricity grid.
2. How much financing has the World Bank approved?
The World Bank has approved $265 million to support the development of the project.
3. What environmental benefits will the project provide?
The project is expected to replace around 3 terawatt-hours of fossil fuel-generated electricity annually and avoid approximately 1.7 million tonnes of CO₂ emissions each year.
4. Who will implement the project?
The project will be implemented by Office National de l’Électricité et de l’Eau potable (ONEE) with co-financing from the African Development Bank.
Sources: Zawya, Arabian Gulf Business Insight, Forbes Middle East, MSN
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