World Bank funds Morocco hydropower
Analysis based on 12 articles · First reported Feb 07, 2026 · Last updated Jul 03, 2026
The approval of financing by the World Bank Group for Morocco's hydropower project is positive for the renewable energy sector, potentially attracting further private investment. However, the World Bank Group's decision to retire its climate lending target could introduce uncertainty regarding future climate-related project funding, although it plans to renew its Climate Change Action Plan.
The World Bank Group board of directors approved $265 million in financing for the Ifahsa Pumped Hydropower Storage Project in northern Morocco. This project will create a 300-megawatt pumped hydropower storage plant, acting as a giant rechargeable battery for Morocco's national electricity grid. It aims to integrate at least 1 gigawatt of additional solar and wind energy, replace fossil fuel-generated electricity, and avoid 1.7 million tons of carbon dioxide emissions annually. The approval came two days after the World Bank Group Group retired its goal to devote 45% of its lending resources to climate-related projects, a decision influenced by pressure from the United States — Presidency of Donald Trump. Despite this, the World Bank Group stated it would renew its Climate Change Action Plan without specific lending input targets.
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