Summary:

On 1 July 2026, the World Bank approved USD 265 million in financing for the 300-MW Ifahsa pumped-storage hydropower project in northern Morocco, alongside co-financing from the African Development Bank and additional concessional and grant funding. 

The project, to be implemented by Morocco’s state utility ONEE near Chefchaouen, will use reversible pump-turbine units to store and generate electricity between two reservoirs, with integration into the national grid via a 400-kV transmission line. 

According to the World Bank, the facility is expected to support the integration of additional renewable capacity, reduce reliance on fossil fuel generation, and mobilize further private investment in Morocco’s energy sector. 

Outlook: 

With this new financing, Morocco continues to secure strong backing from international financial institutions, reinforcing its ability to mobilize large-scale capital for renewable energy projects. This steady inflow of multilateral support strengthens Rabat’s position as a preferred destination for climate and energy transition funding in the region. 

Continued partnerships of this nature are likely to further consolidate Morocco’s role within global green finance networks, giving it greater leverage in shaping future energy cooperation frameworks while expanding the scope of its renewable energy ambitions. 

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