Morocco: The World Bank Plans $265 Million Financing for the Ifahsa Wastewater Treatment Plant
The World Bank is poised to approve significant funding for the Ifahsa pumped energy storage station project, spearheaded by the National Office of Electricity and Drinking Water (ONEE). This strategic initiative, with an overall estimated cost of $500 million, aims to enhance the stability of Morocco’s electrical system and accelerate the integration of renewable energy sources.
A Structural Energy Project for Morocco’s Electric Grid
The Ifahsa pumped storage station is a key infrastructure component for Morocco’s energy transition. With an installed capacity of 300 megawatts, it employs a pumping-turbining system that stores energy by pumping water to an upper reservoir during periods of excess production, then releasing it to generate electricity during peak demand times.
This mechanism will improve the flexibility of the national power grid and secure energy supply, especially during consumption peaks.
A Structured and Diverse International Financing
The project’s financial structure involves multiple international partners. The International Bank for Reconstruction and Development, a branch of the World Bank, is expected to contribute $220 million.
In addition, $45 million will come from climate funds, including the Clean Technology Fund and the Livable Planet Fund. The African Development Bank is also participating in the financing with a contribution of $235 million, bringing the total funding to $500 million.
An Infrastructure Supporting Renewable Energy
Beyond strengthening the electric grid, the Ifahsa pumped storage station will play a central role in integrating renewable energy. The project is expected to support at least 1 gigawatt of new green energy production capacity in Morocco.
This dynamic will also attract private investments estimated at nearly $1 billion, linked to the development of associated energy projects.
A Large-Scale Technical Component
The project includes several technical aspects, such as the construction of the main infrastructure of the power station, the establishment of a high-voltage electrical line of about 62 kilometers, as well as technical assistance and capacity building programs.
All installations will be connected to the national grid via a 400-kilovolt line, ensuring effective integration of energy production and storage.
A Strategic Location in the Chefchaouen Region
The future infrastructure will be located near the city of Chefchaouen, on the right bank of the Laou River, close to an existing hydroelectric facility. The project will include two pumping-turbining units of 150 megawatts each, with a storage capacity estimated at five hours.
The commissioning is scheduled for between 2029 and 2030, in line with the national strategy for developing energy transfer stations.
A Pillar of the National Energy Strategy
The Ifahsa project is part of ONEE’s program to develop 1,000 megawatts of storage capacity through pumped storage systems by 2030. It will complement other similar ongoing projects, thereby enhancing Morocco’s capacity to integrate more renewable energy sources and sustainably secure its electricity supply.
