Morocco secures World Bank clean energy backing

The World Bank board has approved $265 million in financing for the Ifahsa Pumped Hydropower Storage Project in northern Morocco. The project will act as a large rechargeable battery for the national grid by storing electricity through pumped water during periods of high solar and wind output.

Water will then be released through turbines during peak demand, helping improve the reliability and resilience of Morocco’s electricity system. The 300-megawatt facility is designed to support the country’s wider clean energy transition by making renewable power easier to integrate into the grid.

The bank said the project could help Morocco add at least 1 gigawatt of extra solar and wind capacity to its national system. That additional renewable capacity is expected to unlock about $1 billion in private investment.

The World Bank also said the project would replace roughly 3 terawatt-hours of fossil-fuel-generated electricity each year. That shift is expected to avoid about 1.7 million tons of carbon dioxide emissions annually.

Construction is also expected to have a direct employment effect. The bank said the project will generate 820 direct jobs per year during the building phase, along with more jobs across the wider energy sector.

The approval comes just two days after the World Bank Group dropped its goal of directing 45% of lending resources to climate-related projects. Even so, the lender said it will continue its climate action work through a renewed framework without fixed lending targets.

For Morocco, the deal reinforces its position as one of Africa’s more active clean energy markets. The project supports grid stability, renewable expansion and private investment at a time when countries are looking for flexible power systems that can handle more intermittent solar and wind generation.