The World Bank’s board approved $265 million in financing on Wednesday for the Ifahsa Pumped Hydropower Storage Project in northern Morocco, supporting the country’s efforts to expand renewable energy and strengthen its electricity grid.
The 300-megawatt facility will act as a large-scale energy storage system by pumping water to an upper reservoir when solar and wind generation is high, then releasing it through turbines to produce electricity during periods of peak demand.
The project is expected to improve the reliability and resilience of Morocco’s power system while enabling the integration of at least 1 gigawatt of additional renewable energy into the national grid.
The World Bank said the investment could unlock about $1 billion in private capital, displace around 3 terawatt-hours of fossil fuel-based electricity annually and cut an estimated 1.7 million tonnes of carbon dioxide emissions each year.
The approval comes two days after the World Bank Group dropped its target of directing 45% of lending to climate-related projects following pressure from the Trump administration, while pledging to renew its Climate Change Action Plan without fixed lending targets.
The lender said its Independent Evaluation Group will review the climate plan as it shifts to a more demand-driven approach based on client countries’ priorities.
Construction of the project is also expected to create about 820 direct jobs each year, with additional employment opportunities across Morocco’s energy sector.
The financing underscores the World Bank’s continued support for clean energy infrastructure despite changes to its climate lending framework.
The project forms part of Morocco’s broader strategy to increase renewable energy capacity, improve energy security and reduce dependence on fossil fuels.
Once operational, the storage plant is expected to play a key role in balancing intermittent renewable power and meeting rising electricity demand.