The World Bank’s Board of Directors has approved a $265 million loan to support Morocco’s Ifahsa Pumped Hydropower Storage Project, a major clean energy initiative aimed at strengthening the country’s electricity grid and expanding renewable energy integration.

Located near Chefchaouen in northern Morocco, the project will function as a large-scale energy storage facility, pumping water to an upper reservoir during periods of excess solar and wind power before releasing it through turbines to generate electricity when demand rises.

The system is designed to improve the reliability and resilience of Morocco’s electricity network while providing households and businesses with a cleaner and more stable power supply.

The 300 MW  facility will enable the integration of at least 1 GW of additional solar and wind energy into the national grid, helping attract an estimated $1 billion in private investment.

 It is also expected to replace around 3 TWh of fossil fuel-generated electricity annually, reducing carbon emissions by approximately 1.7 million tonnes of CO₂ each year.

Beyond its environmental benefits, the project is expected to deliver significant economic gains.

Construction is projected to create about 820 direct jobs each year, while the additional renewable energy capacity it supports is expected to generate further employment across Morocco’s energy sector and related industries.

The World Bank said the investment represents one of Africa’s largest pumped hydropower storage projects and supports Morocco’s transition to a low-carbon energy system.

It added that improved access to cleaner electricity will also enhance the competitiveness of Moroccan businesses in global markets, where demand for low-carbon supply chains continues to grow. -OGN/TradeArabia News Service