Xlinks Pauses UK-Morocco Undersea Power Cable Project Amid Regulatory Delays
Doha – Xlinks, the British company behind the ambitious project to connect Morocco and the United Kingdom via undersea power cables, has temporarily paused its Development Consent Order (DCO) examination process.
In a May 14 letter to the UK Planning Inspectorate, the company requested this halt while awaiting a crucial decision on its Contract for Difference (CfD) from the UK Department of Energy Security and Net Zero.
The pause comes as the company seeks financial certainty through a CfD that would guarantee fixed electricity prices for 25 years. According to company sources close to the matter, this is 'a pause in the DCO process, not a suspension,' aimed at preventing 'misalignment of different project development stages.'
The main issue holding up the project is the need for price certainty. Xlinks is seeking a guaranteed price of £77 per megawatt-hour for solar energy and £87 for wind energy produced in Morocco's Guelmim-Oued Noun region. Without this financial commitment, investors are reluctant to move forward with the necessary funding.
'Without this clear commitment on a stable price, Xlinks' financial partners are hesitant to inject the necessary investments,' the company stated.
Dave Lewis, Xlinks' chairman, has expressed frustration over the delays and frequent ministerial changes in the UK's energy department. In a January interview with Bloomberg, Lewis noted that the undersea cable project could generate up to £24 billion (MAD 300 billion) in investments, with approximately £5 billion in Great Britain alone.
The project was designated as a 'nationally significant infrastructure project' by the British government in 2023, highlighting its strategic importance to the UK's energy security. It aims to provide power to nine million British households and reduce CO2 emissions from the UK energy sector by 10%.
Read also: Former UK Minister: Morocco Key Player in Britain's Clean Energy Mission
The proposed 3,900-kilometer cable would traverse Portuguese, Spanish, and French coastal waters to connect Morocco's renewable energy facilities with the British grid. If completed, it would deliver 3.6 gigawatts of electricity generated from solar parks, wind farms, and battery storage systems.
Facing continued delays, Xlinks has begun exploring alternatives. Lewis told The Telegraph in early April that if the British government's response was further delayed, shareholders might redirect resources toward other projects under development, including a potential Morocco-Germany connection.
The company opted for direct negotiations with the government rather than going through a tender process, which has contributed to the delays. Political instability in the UK has further complicated negotiations.
Meanwhile, competition is emerging. Australian group Fortescue is developing a similar 100-gigawatt electrical connection project between North Africa and the European Union.
Fortescue's chairman, Andrew Forrest, has confirmed discussions with Ed Miliband, the British Secretary of State for Energy Security, and various European governments about installing multiple undersea cables that could transport up to 500 terawatt-hours (TWh) of electricity annually—nearly equivalent to Germany's total annual consumption.
Even with the most favorable outcome, Xlinks' complex authorization process is unlikely to conclude before 2026. While the company targets a 2030 launch date, effective service might not begin until 2031 at the earliest—a timeline that has investors increasingly concerned.
The project has already received authorization from the Moroccan side, but still requires approvals from France, Spain, and Portugal, which the cables would cross. Tags: UK MoroccoXlinks project
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