Energy Finance Headlines Morocco

Morocco Gets $265 Mln WB Funding for Clean Energy Project Designed to Produce Reliable & Affordable Electricity

The World Bank has approved $265 million to support construction of a ‌new pumped hydropower storage plant in northern Morocco. This clean energy project, one of the landmark infrastructures in Africa, will provide affordable electricity, improve the resilience of the national grid and create jobs.

The Ifahsa Pumped Hydropower Storage Project is designed to 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. It will also 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.

According to the WB, the Ifahsa pumped hydropower storage plant 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 World Bank says the 300-megawatt facility will enable Morocco to integrate at least 1 gigawatt of additional solar and wind energy into its national grid, helping unlock around $1 billion in private investment. In doing so, it will replace approximately 3 terawatt-hours of electricity currently generated from fossil fuels each year — avoiding an estimated 1.7 million tons of CO₂ emissions annually.

 

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