The World Bank’s Board of Directors has approved $265 million in financing for the Ifahsa Pumped Hydropower Storage Project in Morocco. This funding is set to support one of Africa’s largest clean-energy storage projects.

The project is located near Chefchaouen in northern Morocco. Additionally, it is designed to enhance the reliability and resilience of the country’s electricity grid. This will be achieved by providing flexible energy storage that supports the integration of additional renewable power. This project alongside a planned 108MW hydroelectric dam will boost Morocco’s general hydropower capacity. However, the latter is stalled following the liquidation of Platinum Power, which was the company that was supposed to develop the project. Furthermore, The World Bank stated that the project will help deliver a more reliable, affordable, and lower-carbon electricity supply to households and businesses.

Power Storage

Also, the pumped hydropower facility will store excess electricity generated from solar and wind sources. It will achieve this by pumping water to an upper reservoir during periods of high renewable energy production. Additionally, the stored water can then be released through turbines to generate electricity when demand rises or renewable generation declines.

Capacity

The facility boasts a capacity of 300 megawatts. Moreover, it is expected to enable Morocco to integrate at least one gigawatt of additional solar and wind capacity into the national grid while helping attract around $1 billion in private investment.

Also, according to the World Bank, the project will also displace around 3 terawatt-hours of fossil-fuel-based electricity generation annually. Eventually, this will reduce carbon dioxide emissions by an estimated 1.7 million tonnes.

Economic Impact

The initiative is also expected to support local economic development. During construction, the project is expected to create approximately 820 direct jobs annually, while the additional renewable energy capacity it enables is expected to generate further employment opportunities across Morocco’s energy sector.

The World Bank added that greater access to cleaner electricity could strengthen the competitiveness of Moroccan businesses as global markets increasingly favor low-carbon supply chains.

Ifahsa Pumped Hydropower Storage Project Factsheet

Location: Near Chefchaouen (Oued Laou basin, Rif Mountains), Northern Morocco

Capacity: 300 MW (2 × 150 MW reversible pump-turbine units)

Primary Off-taker: Office National de l’Électricité et de l’Eau Potable (ONEE)

Grid Connection: 400 kV high-voltage transmission line

Status: Approved / Development Pipeline (Financing finalized mid-2026)

Financing

• Lead Financier: World Bank Group ($265 million package combining long-tenor IBRD loans, concessional climate funds, and incentive grants).
• Co-financier: African Development Bank (AfDB).

Job Creation: The construction phase is expected to generate approximately 820 direct jobs annually, providing substantial economic opportunities for local communities in the Chefchaouen and Tétouan provinces.