World Bank Group and Morocco partner for next-generation hydropower

The project will strengthen the reliability and resilience of Morocco’s electricity system by providing flexible storage capacity to support the integration of higher levels of renewable energy generation and will provide Moroccan electricity consumers – including households and businesses – with a more reliable, cleaner supply of electricity.

Located near Chefchaouen, the project will serve as a giant rechargeable battery for the national electricity grid. During periods of high renewable energy production – when the sun is shining, or the wind is blowing – the facility can pump water to an upper reservoir. That water is then released through turbines to generate electricity precisely when it is needed most.

The initiative will create real economic opportunities for Moroccan communities. During construction, the project is expected to generate around 820 direct jobs annually, while the renewable energy capacity it enables will create additional employment opportunities across the energy sector and beyond. Moroccan businesses will also benefit from access to cleaner electricity, strengthening their position in international markets that increasingly demand low-carbon supply chains.

The 300 MW facility will enable Morocco to integrate at least 1 GW of additional solar and wind energy into its national grid, helping unlock around US$1 billion in private investment. In doing so, it will replace approximately 3 TWh of electricity currently generated from fossil fuels each year – avoiding an estimated 1.7 million tpy of carbon dioxide emissions.

The World Bank's contribution combines financing from the International Bank for Reconstruction and Development (IBRD), concessional financing from the Clean Technology Fund, and a grant from the Livable Planet Fund. The project is co-financed by the African Development Bank and implemented by the Office National de l'Électricité et de l'Eau potable (ONEE). Together, the co-financing by the two multilateral development banks demonstrates how international partnerships can mobilise funding for large scale clean energy investments and accelerate the transi-tion to a more resilient, low-carbon energy future.

“The Ifahsa project exemplifies the kind of transformative partnerships we strive to build – bringing together multilateral institutions and national authorities, mobilising capital, and investing in infrastructure that delivers environmental, social, and economic dividends. We are honored to stand alongside ONEE with the African Development Bank in supporting what is, to date, one of Morocco's most ambitious clean energy endeavors,” said Ahmadou Moustapha Ndiaye, Division Director for the Maghreb and Malta at the World Bank.

For more news and technical articles from the global renewable industry, read the latest issue of Energy Global magazine.

Energy Global’s Summer 2026 issue

The Summer issue of 2026 is out now! The new issue starts with a regional report on Latin America and the Caribbean, considering the benefits and challenges of renewable energy development in the region. The issue also covers topics such as lubricants, digitalisation, the importance of ports, battery storage technology, and more! With contributors from industry leaders including ABB, WindEurope, Sungrow, among others, this is an issue not to miss.

Read the article online at: https://www.energyglobal.com/other-renewables/03072026/world-bank-group-and-morocco-partner-for-next-generation-hydropower/