en.Wedoany.com Reported - The World Bank has approved $265 million in financing for Morocco's Ifahsa pumped storage project, developed by the National Office of Electricity and Drinking Water (ONEE), with a total estimated cost of $500 million and co-financing from the African Development Bank.
Morocco's energy mix remains heavily dependent on fossil fuel imports, accounting for approximately 87% of current energy demand. As of 2025, the country's renewable energy installed capacity stands at about 5.5 GW, including nearly 1.3 GW of solar, 2.4 GW of wind, and 2.1 GW of hydropower.
The Ifahsa project is one of three pumped storage assets being developed by ONEE as part of its broader energy storage strategy, which targets an additional 1 GW of pumped storage capacity by 2030. ONEE commissioned the 350 MW Abdelmoumen plant in 2024 and is developing the 362 MW El Menzel plant. Additionally, ONEE plans to procure 800 MW/1600 MWh of battery energy storage systems under its 2026-2030 master plan.
Located 14 kilometers from Chefchaouen in northern Morocco, the Ifahsa project will connect to the 400 kV transmission network. The facility will be equipped with two 150 MW reversible pump-turbines, with a maximum flow rate of 44 cubic meters per second in generation mode and 37 cubic meters per second in pumping mode.
World Bank analysis indicates that the project could support the integration of 400 MW of solar and 600 MW of wind power, reducing renewable energy curtailment by approximately 340 GWh annually compared to a scenario without the new plant. The additional pumped storage capacity will help Morocco accommodate more renewable energy in its power generation mix, expected to drive at least 1 GW of new private sector-led projects and unlock approximately $1 billion in private capital.
Morocco's electrification rate continues to rise, with total installed capacity reaching 12 GW in 2024 and peak electricity demand increasing to 8.2 GW in 2025, an 8% year-on-year growth. With peak demand projected to reach 11.3 GW by 2030, increasing capacity and system flexibility is critical.
Ahmadou Moustapha Ndiaye, World Bank Country Director for the Maghreb and Malta, stated that the Ifahsa project exemplifies the type of partnership the World Bank seeks to build, bringing together multilateral institutions, national authorities, and mobilizing capital.
The World Bank-approved loan combines International Bank for Reconstruction and Development (IBRD) financing, concessional financing from the Clean Technology Fund, and a grant from the Livable Planet Fund.
