The UK government has decided against proceeding with a £25bn ($34.4bn) renewable energy project that intended to deliver solar and wind power from Morocco.
In a statement, the government’s Department for Energy Security and Net Zero (DESNZ) announced that the Morocco-UK Power Project will not be considered for a Contract for Difference (CfD) at present.
“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,” Reuters quoted energy department minister Michael Shanks as saying in a written statement to parliament.
The government noted that domestic projects present more favourable economic advantages, as the UK aims to decarbonise the electricity sector by 2030.
The Morocco-UK Power Project, the flagship project of privately owned company Xlinks, aimed to transport renewable energy to the UK from North Africa through a 4,000km subsea cable. This would have involved importing up to 11.5GW of solar and wind power.
Xlinks was seeking a guaranteed minimum electricity price, known as a contract for difference, from the UK government.
Initially, the project was regarded by the previous UK administration as having ‘national significance’, but it encountered financial and regulatory challenges. Early investors included Abu Dhabi energy firm TAQA, Total Energies, and Octopus Energy.
However, the government noted that domestic projects present more favourable economic advantages, as the UK aims to decarbonise the electricity sector by 2030.
Xlinks chair 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, not least the opportunity to lower the wholesale price of electricity, which is currently one of the highest in Europe.”
Lewis further noted: “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.”
“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,” he added.
