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Xlinks requests pause in UK permit process as it awaits pricing decision for Morocco–UK project

Xlinks requests pause in UK permit process as it awaits pricing decision for Morocco–UK project

Ya Biladi3 days ago

Xlinks, the company behind the 4,000 km subsea cable to deliver solar and wind-generated electricity from Morocco to the UK, has paused its application for a Development Consent Order (DCO)—a legal authorization required for large infrastructure projects in the UK.
Xlinks formally requested the pause in a letter to the UK Planning Inspectorate on May 14, explaining that it wants to wait for the outcome of its Contract for Difference (CfD) bid before proceeding.
The CfD is a pricing mechanism that allows renewable energy developers to lock in a fixed price for their electricity over a set period, ensuring financial stability for large-scale projects. Xlinks expects a decision in late spring and is seeking a price of £70–80 per megawatt-hour (MWh), lower than comparable projects.
Aligning project stages
The Planning Inspectorate's answer was swift, granting Xlinks said pause on May 15. Sources close to the project told Yabiladi that the pause is not a suspension or cancellation, but a strategic move to align project stages.
«The purpose of the pause is to allow the review process to proceed as efficiently and rigorously as possible, while ensuring that the DCO can then progress rapidly», they explained.
It is worth noting that the Morocco–UK Power Project aims to deliver 3.6 gigawatts (GW) of dispatchable, clean energy from solar, wind, and battery facilities in Morocco to the UK. The project, which could cost up to £24 billion, is expected to cut UK carbon emissions by 10% and reduce wholesale electricity prices by 9.3%.
In 2022, the project was included in the UK's strategic energy vision and recognized as a project of national significance in 2023.
For the record, Xlinks has expressed frustration over delays in receiving UK government backing for the project, warning it could move the initiative to another country. Speaking to local media in March, Sir Dave Lewis, chairman of Xlinks, said that the delays in securing government approval are undermining investor confidence.

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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

Xlinks requests pause in UK permit process as it awaits pricing decision for Morocco–UK project
Xlinks requests pause in UK permit process as it awaits pricing decision for Morocco–UK project

Ya Biladi

time3 days ago

  • Ya Biladi

Xlinks requests pause in UK permit process as it awaits pricing decision for Morocco–UK project

Xlinks, the company behind the 4,000 km subsea cable to deliver solar and wind-generated electricity from Morocco to the UK, has paused its application for a Development Consent Order (DCO)—a legal authorization required for large infrastructure projects in the UK. Xlinks formally requested the pause in a letter to the UK Planning Inspectorate on May 14, explaining that it wants to wait for the outcome of its Contract for Difference (CfD) bid before proceeding. The CfD is a pricing mechanism that allows renewable energy developers to lock in a fixed price for their electricity over a set period, ensuring financial stability for large-scale projects. Xlinks expects a decision in late spring and is seeking a price of £70–80 per megawatt-hour (MWh), lower than comparable projects. Aligning project stages The Planning Inspectorate's answer was swift, granting Xlinks said pause on May 15. Sources close to the project told Yabiladi that the pause is not a suspension or cancellation, but a strategic move to align project stages. «The purpose of the pause is to allow the review process to proceed as efficiently and rigorously as possible, while ensuring that the DCO can then progress rapidly», they explained. It is worth noting that the Morocco–UK Power Project aims to deliver 3.6 gigawatts (GW) of dispatchable, clean energy from solar, wind, and battery facilities in Morocco to the UK. The project, which could cost up to £24 billion, is expected to cut UK carbon emissions by 10% and reduce wholesale electricity prices by 9.3%. In 2022, the project was included in the UK's strategic energy vision and recognized as a project of national significance in 2023. For the record, Xlinks has expressed frustration over delays in receiving UK government backing for the project, warning it could move the initiative to another country. Speaking to local media in March, Sir Dave Lewis, chairman of Xlinks, said that the delays in securing government approval are undermining investor confidence.

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