UK Turns Down £25 bn Morocco–UK Renewable Power Link

The UK government has declined to back the proposed Xlinks Morocco–UK Power Project, a massive £20–25 billion plan to import solar and wind energy from Morocco via a long subsea cable. Instead, ministers say they will prioritize “home-grown” green energy.

Why the UK Said “No”

After nearly two years of uncertainty, the Department for Energy Security and Net Zero (DESNZ) confirmed it will not progress with a Contract for Difference (CfD)—a price guarantee — for Xlinks. The government cited:

• High delivery risks: The 4,000 km cable is unprecedented and seen as hard to build and operate.
• Security concerns: Subsea cables are vulnerable to damage and sabotage.
• Strategic goals: The plan did not align with the UK’s aim to build domestic renewable capacity.

What Xlinks Planned

Xlinks, led by former Tesco boss Sir Dave Lewis and entrepreneur Simon Morrish, designed a project to:

• Generate up to 11.5 GW of solar and wind in Morocco.
• Build a 3.6 GW dual HVDC subsea cable stretching ~4,000 km.
• Install converter stations in Devon and batteries totaling 22.5 GWh.
• Supply around 8–9 % of UK electricity demand—enough for 7 million homes. 
• Deliver energy ~19 hours daily using Moroccan sun, wind and storage.

Economic and Environmental Case

Xlinks said its plan could:

• Cut wholesale electricity prices by 9% in year one.
• Slash UK CO2 emissions by ~10%.
• Inject £20 billion of socio‑economic benefits, £5 bn into UK green businesses.
• Require no upfront taxpayer financing—funded privately.

Who Was Funding It?

Early investors included major energy groups:

• TotalEnergies
• TAQA (Abu Dhabi)
• Octopus Energy
• GE Vernova

Xlinks raised around £100 million for development and secured funding backing from institutions.

Subsea Route & Security

The cable would run from Tan‑Tan, Morocco to Devon in the UK via a route avoiding deep ocean trenches. It would be buried to reduce risk from anchors, fishing, or potential sabotage.

Government’s Shift to Domestic Energy

Energy Secretary Ed Miliband and ministers pointed to recent policy moves:

• Growing support for nuclear energy as a reliable source.
• Waiver of green levies for heavy industries reduces CfD budget.
• Focus on home‑grown green power seen as better for jobs, supply chains, and security.

Exploring Domestic vs. Imported Power

Analysts warn that always relying on UK-made wind and solar could expose the country to:

• Supply chain risks: Critical minerals often come from unstable regions.
• Intermittency issues: “Dunkelflaute”—low ”wind and sun can reduce output.

In contrast, importing from Morocco would have helped balance these gaps.

Reaction from Xlinks

Sir Dave Lewis said the decision left Xlinks “hugely surprised and bitterly disappointed.” He emphasized:

• No taxpayer funding required
• Competitive energy price (£70‑80/MWh vs £90/MWh for nuclear) 
• Strong global investor appetite

Xlinks now plans to explore private contracting or alternative national partners.

Diplomatic Ties with Morocco

Despite rejecting the project, the UK affirmed that Morocco remains a key partner. Recent agreements on trade, green energy, and Western Sahara marked growing ties.

The government said this decision “does not reflect on Morocco as a strategic partner.” 

Project Summary Table

What Happens Next?

Xlinks says it will:

• Continue surveys and seek permits
• Develop its Scottish cable factory, XLCC
• Seek private deals or different national partners

Conclusion

The UK’s rejection marks a shift from global-scale green power imports to investing in national energy. Yet, experts warn this strategy has risks. Meanwhile, Xlinks still believes its plan has merit and may find another path.

This decision shows the tension between boosting UK-based wind, solar, and nuclear and exploring bold international solutions.