World Bank backs Morocco Hydropower Project

The World Bank has approved USD 265 million in financing for the Ifahsa Pumped Hydropower Storage Project in northern Morocco.

The lender said the project will strengthen Morocco’s electricity grid and support the integration of more renewable energy into the national power system.

The facility will be located near Chefchaouen and will operate as a large storage system for electricity generated from solar and wind power.

During periods of high renewable energy production, the plant will pump water from a lower reservoir to an upper reservoir. The water will later be released through turbines to generate electricity during periods of high demand.

The World Bank said the 300-megawatt facility will help Morocco integrate at least one gigawatt of additional solar and wind capacity into its national grid.

The bank said the project could help unlock about USD 1 billion in private investment and generate about 820 direct jobs annually during construction.

It also said the project would replace about three terawatt-hours of electricity currently produced from fossil fuels each year and avoid an estimated 1.7 million tonnes of carbon dioxide emissions annually.

The project is being implemented by Morocco’s Office National de l’Électricité et de l’Eau potable.

The World Bank said its contribution includes financing from the International Bank for Reconstruction and Development, concessional financing from the Clean Technology Fund and a grant from the Livable Planet Fund.

The project is also co-financed by the African Development Bank.

Reuters reported that the approval came two days after the World Bank said it would end its target of allocating 45% of lending to climate-related projects.

It was not immediately clear how the revised lending framework would affect future renewable energy financing.

SOURCE: Reuters, World Bank