World Bank Backs 300 MW Pumped Hydropower Storage Plant in Morocco
Jul 03, 2026
Morocco's state-owned utility has secured $265 million to build a 300 MW/1,500 MWh pumped hydro storage plant, which is expected to support at least 1 GW of new solar and wind capacity.
The World Bank has approved a new financial package for the Ifahsa project, which is being developed by Morocco's National Office of Electricity and Potable Water (ONEE). The total project cost is forecast at $500 million and is co-financed by the African Development Bank.
Located 14 km from Chefchaouen in the north of Morocco, Ifahsa will be connected to the 400 kV transmission network. The project will consist of two reversible pump-turbine units of 150 MW each operating with a maximum flow of 44 m³ per second in turbine mode, and 37 m³ per second in pumping mode.
Ifahsa is one of three pumped hydro storage assets developed by ONEE as part of a broader energy storage strategy which targets 1 GW of new pumped hydro by 2030. ONEE commissioned the 350 MW Abdelmoumen plant in 2024 and has a 362 MW plant under development in El Menzel. Increased BESS capacity is also planned, and ONEE aims to procure 800 MW/1,600 MWh as part of its 2026 to 2030 master plan.
Adding new pumped storage capacity in Morocco should allow the North African nation to accommodate more renewables in the electricity generation mix, and the World Bank expects at least 1 GW of new private sector-led projects as a result. Financing for Ifahsa should also unlock around $1 billion of private capital, according to the World Bank, as investors back new renewables capacity.
World Bank analysis of Ifahsa claims the project could support integration of 400 MW of solar and 600 MW of wind, while reducing renewable energy curtailment by approximately 340 GWh per year relative to what could be expected without the new plant.
Morocco's energy mix remains heavily reliant on fossil fuel imports, which account for roughly 87% of the country's current energy needs according to the World Bank, but significant progress has been made. Morocco had roughly 5.5 GW of installed renewable generation capacity in 2025, consisting of nearly 1 GW solar, 2.4 GW wind and 2.1 GW hydro capacity.
Capacity additions have come at a time of increased electrification in Morocco, and more deployment will be needed to meet forecast future demand. Total installed generating capacity reached 12 GW in 2024 while peak power demand grew to 8.2 GW in 2025, up 8% on 2024. Peak power demand is projected to reach 11.3 GW by 2030, making increased capacity and system flexibility key.
Ahmadou Moustapha Ndiaye, division director for the Maghreb and Malta at the World Bank, said the Ifahsa project exemplifies the kind of partnerships the bank tries to build, bringing together multilateral institutions, national authorities, and mobilizing capital.
The World Bank-approved loan 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.
