'Major setback' for Morocco power cable link plan
Those behind the Xlinks project said they were "bitterly disappointed", adding the scheme had the potential to "provide 8% of the UK's electricity needs".
Concerns had been raised over the potential disruption of the project on those living close to the proposed 14km (8.5 mile) onshore underground cable route.
"It's a major setback," said Johnny Gowdy, director at Regen, a not-for-profit organisation supporting the transition to a net-zero energy future. The government said it made the decision after "careful consideration".
A Department for Energy Security and Net Zero (DESNZ) spokesperson said: "After careful consideration, we have decided not to support the Xlinks Morocco-UK power project.
"We are grateful to the project developers for their innovative proposal.
We will continue to work with Morocco and are committed to strengthening our partnership."
Xlinks had requested government support for the project, including a Contract for Difference (CfD), which would guarantee a set price per MWh of electricity.
In a written ministerial statement on 26 June, Energy Minister Michael Shanks said the scheme was "not in the UK national interest at this time" and "does not clearly align strategically with the government's mission to build homegrown power here in the UK".
The Xlinks Morocco-UK Power Project proposed using subsea cables to bring renewable wind and solar power from Morocco to the village of Alverdiscott.
Under the proposals, four cables would be buried onshore over a period of up to two years.
A new electricity substation would also be built next to an existing substation at Alverdiscott, along with two new converter stations, on a site of about 32 hectares (79 acres).
If planning permission was granted, the construction work in Devon would take six years.
The project already has a 3.6GW connection agreement with National Grid and was designated as a project of National Significance by the previous Conservative government in 2023.
Xlinks said the scheme could provide enough electricity to power seven million homes.
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