[VIDEO] Government rejects Morocco-UK power cable project

The £25bn Morocco-UK power cable project, which would bring solar and wind energy from the Sahara to the UK, has been blocked by the government in favour of homegrown energy solutions

The 3,800km interconnector Morocco-UK power cable would have been capable of supplying up to 8% of the UK’s electricity needs, according to Xlinks, who proposed the project to the UK government.

THe project involved building solar and wind farms in Morocco’s Guelmin Oued Noun region and connect it exclusively to the UK via HVDC subsea cables, coming ashore near Bideford in North Devon.

The undersea power cable would have been the world’s largest, with a receiving capacity of 3.6GW.

However, the UK Department for Energy Security & Net Zero announced on Friday that the £25bn project “does not clearly align strategically with the government’s mission to build homegrown power here in the UK”.

Energy minister Michael Shanks said on the Morocco-UK power cable project:

“Xlinks approached government requesting support for the project, including a bilaterally negotiated 25-year contract for difference under section 10 of the Energy Act 2013, that would guarantee a set price per MWh of electricity supplied for the life of the contract.

“A team of officials within the Department for Energy Security & Net Zero has engaged with Xlinks closely to understand the details of the proposal and has been working across government to evaluate the viability and merits of the project. This evaluation has considered if and how the project could support the government’s strategic objectives and the risks which could impact the successful delivery of it.

“The government has concluded that it is not in the UK national interest at this time to continue further consideration of support for the Morocco-UK power project. The government has concluded the project does not clearly align strategically with the government’s mission to build homegrown power here in the UK.

“This would be a first of a kind mega project, which has a high level of inherent, cumulative risk (delivery, operational, and security). We acknowledge the excellent work of Xlinks on trying to mitigate these risks where possible but nevertheless, this remains a factor in decision-making.

“Ultimately, we have determined there are stronger alternative options that we should focus our attention on to meet the government’s plans to decarbonise the power sector and accelerate to net zero at least risk to billpayers and taxpayers.

“The government also believes that domestic alternatives can see greater economic benefits whether that be through jobs or supply chains.”

Xlinks chair Sir Dave Lewis responded:

“We are hugely surprised and bitterly disappointed that the UK government would choose to walk away from an opportunity to unlock the substantial value that a large-scale renewable energy project like this would bring, not least the opportunity to lower the wholesale price of electricity, which is currently one of the highest in Europe.

“We developed this project to rapidly realise the potential of long-distance electricity generation and connection for the UK and Morocco – potential that was recognised by the UK in 2023, when it was designated as a nationally significant project.

“The project requires no upfront government investment and offered a highly competitive CfD strike price. It would reduce wholesale electricity prices by over 9% in its first year; bring in £20bn of socio-economic value, including a £5bn injection into the UK’s green industries; provide 8% of the UK’s electricity needs at a time when demand is rocketing; cut power sector CO2 emissions by c.10% in its first year; and increase energy security through increased diversity of supply and reduced reliance on imported gas.

“Furthermore, it would address the challenge of sharp drops in UK power generation when the wind isn’t blowing or the sun isn’t shining. It would do this at significantly lower cost than the nuclear alternative and be connected to the grid much sooner.

“The international investment community identified the potential of the opportunity. Over £100m from leading energy sector players has already been spent on project development, and demand from lenders to participate in the construction phase is greater than we require.

“Most importantly, Morocco – a world leader in renewable energy – recognises the strategic value of interconnections. We have been continuously impressed by the vision, framework and environment that Morocco has put in place to foster international energy collaboration through supporting innovative initiatives, as part of its long-term vision to lead the international community’s efforts towards net zero.

“Ultimately, we have no choice but to accept DESNZ’s decision. We are now working to unlock the potential of the project and maximise its value for all parties in a different way.”

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