The World Bank Group and the Government of Morocco have announced a new partnership to develop a large-scale pumped storage hydropower project in northern Morocco, aimed at strengthening the country’s electricity system while accelerating the transition to renewable energy.
The Ifahsa Pumped Hydropower Storage Project, located near Chefchaouen, has been approved with $265 million in financing from the World Bank. It is considered one of the most significant pumped storage energy projects on the African continent.
The facility will act as a large “rechargeable battery” for Morocco’s national power grid. During periods of high renewable energy production, such as when solar and wind output is strong, excess electricity will be used to pump water into an upper reservoir. When demand increases, the stored water will be released through turbines to generate electricity, ensuring a stable and reliable energy supply.
The project is designed to improve grid stability, support the integration of at least 1 gigawatt of additional renewable energy, and reduce reliance on fossil fuels. It is expected to replace around 3 terawatt-hours of fossil fuel-based electricity annually, cutting approximately 1.7 million tons of CO₂ emissions each year.
In addition to environmental benefits, the project is expected to generate economic opportunities, including around 820 direct construction jobs annually and broader employment growth in Morocco’s renewable energy sector. It will also help strengthen industrial competitiveness by providing cleaner and more reliable electricity to businesses.
The initiative is co-financed by the African Development Bank, alongside contributions from the World Bank’s International Bank for Reconstruction and Development (IBRD), the Clean Technology Fund, and the Livable Planet Fund. It will be implemented by Morocco’s national utility, the Office National de l’Électricité et de l’Eau potable (ONEE).
World Bank officials described the project as a model of international cooperation, combining multilateral financing and national leadership to support large-scale clean energy infrastructure and accelerate the shift toward a low-carbon, climate-resilient energy future.
