Published On 2/7/2026
The World Bank’s Board of Executive Directors approved financing worth $265 million to support the “Efahsa” pumped hydroelectric storage project in northern Morocco, which is a major investment in clean energy infrastructure, which the Bank described as one of the most important projects of its kind on the African continent.
The World Bank said, in a statement, that the project will enhance the reliability and flexibility of Morocco’s electricity system by providing flexible storage capacity that helps integrate higher levels of renewable energy production, and provides cleaner and more stable electricity supplies to homes and businesses.
Giant battery
The project is located near the city of Chefchaouen, and will operate according to the bank’s description as a “giant rechargeable battery” for the national grid, as periods of high solar or wind energy production are used to pump water into an overhead tank, and then the water is released through turbines to generate electricity when demand rises.
The capacity of the Ihsaa station is 300 megawatts, and it is expected that Morocco will be able to integrate at least an additional gigawatt of solar and wind energy into its national grid, which will help mobilize about one billion dollars in private sector investment.
The World Bank expects the project to replace about 3 terawatt-hours of electricity currently generated from fossil fuels annually, avoiding the emission of about 1.7 million tons of carbon dioxide every year.
The bank also expects that the project will create about 820 direct job opportunities annually during the construction phase, with the renewable energy capacity that it will help integrate into the network providing additional opportunities in the energy sector and other sectors, with Moroccan companies benefiting from cleaner electricity in international markets that are now demanding low-carbon supply chains.
The World Bank’s financing for the project consists of financing from the International Bank for Reconstruction and Development, soft financing from the Clean Technology Fund, and a grant from the “Livable Planet” Fund, while the African Development Bank participates in financing the project, and it is implemented by the National Office of Electricity and Drinking Water in Morocco.
Director of the Maghreb and Malta Department at the World Bank, Ahmadou Mustapha Ndiaye, said that the Ihsaa project embodies the “transformative partnerships” that the bank seeks to build by bringing together multilateral institutions and national authorities, mobilizing capital and investing in infrastructure that achieves environmental, social and economic returns, describing the project as one of the most ambitious clean energy projects in Morocco to date.
Support the green transition
The World Bank project document indicates that the development goal of the Ihsaa station is to enable Morocco to integrate a higher share of renewable electricity into the electric transmission system, through developing a storage station that helps balance supply and demand and address intermittent solar and wind energy production.
The document shows that electricity consumption in Morocco has grown at a rate of 4% annually since 2010, reaching 45.7 terawatt-hours in 2024, which increases the need to support the rising demand while reducing dependence on fossil fuels and exploiting the country’s resources of sun and wind.
The installed capacity of renewable energy in Morocco reached 5,337 megawatts in 2024, i.e. 45% of the total installed capacity, but it met only 25% of the national demand for electricity, according to a World Bank document, which indicates that wind energy topped the list with about 2,360 megawatts, followed by hydroelectric energy with 2,120 megawatts and solar energy with 857 megawatts.
The National Office of Electricity and Potable Water plans to add 12,445 megawatts of renewable energy capacity by 2030, raising the share of renewable energy to 64% of installed capacity and 59% of electricity production, with a possible reduction of the share of coal to 26% of electricity generation, according to the same document.
In this context, the Iffsa project represents not only an additional generating station, but a tool to stabilize the network and store electricity during surplus times and release it at peak times. The bank document says that Morocco aims to develop 1,000 megawatts of pumped hydroelectric storage by 2030, including the Abdel Moumen station with a capacity of 350 megawatts in Agadir, and the Manzala station with a capacity of 350 megawatts under development, in addition to the Iffsa station.
The World Bank document estimates the total cost of the project at approximately $450 million, including $210 million from the International Bank for Reconstruction and Development, $30 million from the Clean Technology Fund, and $210 million from the African Development Bank, while the most recent bank statement indicates that the World Bank Group’s total contribution amounts to $265 million after adding the grant and related financing.
Morocco loans
Financing Ihsaa comes as part of a clear expansion in the World Bank’s portfolio in Morocco, as data from the World Bank Group’s “Finance One” show that the bank’s total commitments to the country amounted to $28.88 billion as of May 31, 2026, distributed over 216 projects, with Morocco classified as eligible to borrow from the International Bank for Reconstruction and Development only.
In April 2026, the World Bank approved $500 million in financing to Morocco as part of the first development policy loan to support jobs and green growth, and aims to improve labor market policies, support small and medium-sized companies, and stimulate investment in clean energy, energy efficiency, and export-oriented pharmaceutical industries.
In June 2026, the World Bank approved two new programs for Morocco with a total value of $650 million, including $250 million to accelerate digital transformation, and $400 million to enhance financial resilience to climate risks, disasters, and cyberattacks, with the goal of mobilizing special financing for climate infrastructure projects.
In March 2025, the World Bank approved $600 million in financing for the third phase of the “Strengthening Human Capital for a Resilient Morocco” program, to support the country’s ability to confront health risks, improve human capital in childhood, reduce poverty among the elderly, and enhance climate risk management.
In June 2025, the Bank approved $250 million in financing to support the reform of social safety nets in Morocco, by improving access to cash transfers and expanding the package of social benefits for vulnerable groups.
