The World Bank has approved $265 million in financing for a pumped hydropower storage facility in northern Morocco. The planned Ifahsa project will function as a large rechargeable battery for the national electricity grid, helping the country store power produced by solar and wind facilities. Its approval came shortly after the bank ended its target of directing 45% of annual lending towards projects with climate benefits.

During periods of high renewable-energy production, the plant will use electricity to pump water into an upper reservoir. The stored water will later be released through turbines when electricity demand rises, providing flexible power when the grid needs it most. This system is intended to improve the reliability of Morocco’s electricity supply while allowing the country to add more renewable energy.

The 300-megawatt facility is expected to support the integration of at least one gigawatt of additional solar and wind capacity. According to the World Bank, the project could also help bring about $1 billion in private investment. It is expected to replace approximately three terawatt-hours of electricity generated from fossil fuels each year and prevent an estimated 1.7 million tonnes of carbon dioxide emissions annually.

Construction is projected to generate about 820 direct jobs each year, along with further employment across Morocco’s energy sector. Although the World Bank has removed its numerical climate-lending target, it plans to renew its Climate Change Action Plan without setting a fixed financing share.