Morocco: The World Bank Grants $265 Million for a Strategic Energy Storage Project
The World Bank has approved a funding of $265 million for the pumped-storage hydroelectric project in Ifahsa, near Chefchaouen. This project is one of the largest of its kind on the African continent and aligns with Morocco’s strategy to strengthen its sustainable energy model.
An Infrastructure to Strengthen the National Electric Network
The future power plant, with a capacity of 300 MW, will enhance the flexibility and stability of Morocco’s electrical grid. Through this storage technology, the Kingdom will be able to incorporate more electricity generated from renewable sources, particularly solar and wind energy, while ensuring a more reliable supply for households and businesses.
The principle behind this technology involves pumping water to a reservoir situated at a higher elevation when there is excess renewable electricity production. This water is then released through turbines to generate electricity during periods of high demand, making the facility a large-scale natural battery.
A Catalyst for Investment and Employment
Beyond its energy impact, the project is expected to generate significant economic benefits. The construction phase is anticipated to create approximately 820 direct jobs annually, while also stimulating local business activity and the development of new renewable energy projects.
This infrastructure will also contribute to providing low-carbon electricity to Moroccan industries, thereby enhancing their competitiveness in international markets where environmental standards are increasingly important.
Over One Gigawatt of Additional Renewable Energy
The commissioning of the plant will allow for the integration of at least an additional gigawatt of solar and wind capacity into the national network. The project is also expected to facilitate the mobilization of around $1 billion in private investments within Morocco’s clean energy sector.
Significant Environmental Impact
The Ifahsa project is expected to reduce electricity generation from fossil fuels by approximately 3 terawatt-hours per year, thereby avoiding the emission of nearly 1.7 million tons of CO₂ annually. This initiative marks another step in Morocco’s strategy toward decarbonization and developing a more sustainable energy system.
The financing combines a loan from the International Bank for Reconstruction and Development (IBRD), concessional financing from the Clean Technology Fund, and a grant from the Fund for a Livable Planet. The African Development Bank is also participating in funding the project, which will be implemented by the National Office of Electricity and Drinking Water (ONEE).
