UK Government Deals Crushing Blow to €29.5 Billion Morocco-UK Power Link
The UK Government has delivered a devastating rejection to the ambitious £25 billion Xlinks Morocco-UK power project, walking away from what could have been a game-changing renewable energy partnership spanning 4,000 kilometers of subsea cables.
The Department for Energy Security and Net Zero announced it would no longer consider a contract for difference for the project, effectively killing the initiative that promised to deliver 11.5 GW of Moroccan solar and wind power directly to British homes.
The project’s scope was breathtaking – harnessing Morocco’s abundant renewable resources to supply clean electricity to the UK for an average of 20 hours daily, potentially powering over seven million British homes by 2030. Industrial-scale battery energy storage systems would have complemented the solar PV and wind installations.
Xlinks Chair Sir Dave Lewis expressed bitter disappointment at the government’s decision, particularly given the project’s compelling economics. The initiative required no upfront government investment while offering a highly competitive strike price that would have reduced wholesale electricity prices by over 9% in its first year.
The rejection comes despite backing from heavyweight investors including Abu Dhabi energy firm TAQA, TotalEnergies, and the UK’s Octopus Energy, who had already committed around £100 million in private funding.
Government sources suggest the decision reflects a strategic focus on homegrown energy supplies, though critics argue the UK has missed a golden opportunity to diversify its energy portfolio while supporting its net-zero ambitions.
Source: offshore-energy.biz
