World Bank approves $265 million for Morocco Ifahsa pumped hydropower storage project

The World Bank has approved $265 million for the Ifahsa Pumped Hydropower Storage Project in northern Morocco. The 300 MW facility near Chefchaouen will act as a large scale battery for the national grid, pumping water to an upper reservoir during high solar and wind output and releasing it through turbines during peak demand. The project is expected to help Morocco integrate at least 1 GW of additional renewable energy and replace roughly 3 TWh of fossil fuel generation each year, avoiding an estimated 1.7 million tons of CO2 annually. The construction phase alone is projected to create about 820 direct jobs per year. The financing combines resources from the International Bank for Reconstruction and Development, the Clean Technology Fund, and the Livable Planet Fund. The African Development Bank is co-financing the project, which will be implemented by Morocco's National Office of Electricity and Drinking Water. The World Bank says the project could unlock around $1 billion in private investment and help Moroccan businesses access cleaner electricity for low carbon supply chains. The approval comes just after the World Bank retired its 45% climate lending target, but the Ifahsa project still fits within Morocco's broader push toward clean energy driven by drought and climate shocks.