The World Bank Board of Directors approved $265 million on Wednesday to fund the Ifahsa Pumped Hydropower Storage Project in Morocco, marking a significant clean energy investment in northern Morocco, and one of the largest projects of its type on the African continent.
This initiative aims to enhance the reliability and resilience of Morocco’s electricity system by adding flexible storage capacity that facilitates the integration of increased renewable energy sources. Consequently, Moroccan consumers—both households and businesses—will benefit from a more dependable and cleaner electricity supply.
Situated near Chefchaouen, the project will act as a large rechargeable battery for the national electricity grid. During times of high renewable energy output—such as sunny or windy periods—the facility will pump water to an upper reservoir. This stored water can then be released through turbines to generate electricity precisely when it’s most needed.
The initiative is expected to generate significant economic opportunities for Moroccan communities. Throughout its construction, around 820 direct jobs are anticipated annually. Furthermore, the renewable energy capacity it facilitates will lead to additional job openings across the energy sector and beyond. Moroccan businesses will also gain access to cleaner electricity, enhancing their competitiveness in international markets that increasingly prioritize low-carbon supply chains.
This 300-megawatt facility will enable Morocco to incorporate at least 1 gigawatt of extra solar and wind energy into its national grid, unlocking approximately $1 billion in private investment. In doing so, it will replace around 3 terawatt-hours of electricity currently produced from fossil fuels each year, preventing an estimated 1.7 million tons of CO₂ emissions annually.
