World Bank Approves $265 Million for Morocco Hydropower Project

The 300-megawatt facility will allow Morocco to integrate at least 1 gigawatt of additional solar and wind energy into its electricity network.

The World Bank has approved US$265 million to support the Ifahsa Pumped Hydropower Storage Project in northern Morocco, one of the largest clean energy storage projects on the African continent. Located near Chefchaouen, the project is designed to strengthen the reliability and resilience of Morocco's electricity system while making it easier to integrate larger amounts of renewable energy into the national grid.

The pumped storage facility will work like a giant rechargeable battery. During periods when solar and wind generation is high, water will be pumped to an upper reservoir. When electricity demand rises, the stored water will be released through turbines to generate power, helping provide households and businesses with a more stable and cleaner electricity supply.

Project expected to create jobs and attract investment

The 300-megawatt facility will allow Morocco to integrate at least 1 gigawatt of additional solar and wind energy into its electricity network. The project is also expected to unlock around US$1 billion in private investment by strengthening the country's renewable energy infrastructure. Construction is expected to create approximately 820 direct jobs each year, while the expansion of renewable energy capacity will support additional employment across the wider energy sector. Businesses are also expected to benefit from greater access to reliable low-carbon electricity, helping them remain competitive in international markets where demand for cleaner supply chains continues to grow. The project is expected to replace around 3 terawatt-hours of electricity currently generated from fossil fuels every year, reducing carbon emissions by an estimated 1.7 million tonnes of CO₂ annually.

International partnership supports Morocco's energy transition

The World Bank's financing package combines support from the International Bank for Reconstruction and Development (IBRD), concessional financing from the Clean Technology Fund, and a grant from the Livable Planet Fund. The project is being co-financed by the African Development Bank and will be implemented by Office National de l'Électricité et de l'Eau potable (ONEE).

Ahmadou Moustapha Ndiaye, Division Director for the Maghreb and Malta at the World Bank, said the project demonstrates how international partnerships can mobilise large-scale investment for infrastructure that delivers environmental, economic, and social benefits. He added that the initiative reflects close cooperation between development institutions and Moroccan authorities to accelerate the country's transition towards a more resilient and low-carbon energy system.