The UK government has officially withdrawn its support for the £25 billion ($34.4 billion) Morocco-UK Power Project, a pioneering plan to harness solar and wind energy from the Sahara Desert and transmit it to Britain via the world’s longest subsea power cable.
The ambitious project, led by British clean energy company, Xlinks, involved laying over 3,800 kilometers of high-voltage subsea cables from Morocco’s Guelmim-Oued Noun region to Devon in southwest England, to generate enough electricity to power over 7 million UK homes, accounting for up to 8% of the country’s energy needs.
Prior to its termination, the inter-continental energy project, which would have harnessed over 10.5 gigawatts of solar and wind power to deliver a steady 3.6 gigawatts of baseload energy, had reportedly cleared environmental permits and was scheduled for construction as early as 2027.
Reuters report that over £100 million ($137 million) has already been spent on development and feasibility studies, with significant interest from lenders to fund the construction phase.
However, the lack of a government-backed contract for difference and a guaranteed minimum price for electricity made the project riskier and less attractive to investors.
Michael Shanks, UK Energy Minister highlighted the reasons for the decision; he said the government had 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.”
He also cited concerns over economic alignment and a shift toward “homegrown power” as part of a broader energy security strategy, adding that the government had concluded that it preferred domestic renewable investments with greater economic and energy security benefits.
Reacting to the news of cancellation, Xlinks, Chairman, Dave Lewis said,
“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,”
“We are now working to unlock the potential of the project and maximize its value for all parties in a different way.” He added.
The Morocco-UK Power Project
At its core, the Morocco-UK Power Project was envisioned as a transcontinental clean energy solution; designed to tap into North Africa’s abundant sunshine and wind to help the UK meet its 2030 net-zero grid ambitions while easing reliance on natural gas.
It would have featured 11.5 gigawatts of solar and wind capacity with battery storage to deliver 3.6 gigawatts of steady baseload power.
Despite backing from major investors like TAQA, TotalEnergies, Octopus Energy, and GE Vernova, concerns over the project’s complexity, transmission length, geopolitical risks, and dependency on a non-European partner ultimately led to the UK’s decision to pull back.
As global clean energy investment is projected to reach $3.3 trillion in 2025, with two-thirds going towards renewables and storage, the UK’s move signals a shift towards resilient, domestic systems over cross-border mega-deals.
While there has been no response from the Moroccan side, Xlinks may redirect its focus to other European markets like Germany, keeping alive Africa’s potential as a future green energy exporter.
Source: Business Insider
