UK officially drops Morocco-UK Xlinks cable project, saying it's not in its «national interest»
The decision, which had already surfaced in the British press before its formal announcement, was confirmed by Energy Minister Michael Shanks in a written statement to Parliament on Thursday. «The government has concluded that it is not in the UK's national interest at this time to continue further consideration of support for the Morocco-UK Power Project», he stated.
Shanks added that the project no longer aligns with the UK's strategic objective of strengthening domestic energy production.
The Department for Energy Security and Net Zero (DESNZ) also confirmed the decision, stating it would no longer consider a Contract for Difference (CfD) for the project—a mechanism that guarantees a minimum price for electricity generated, Xlinks said.
Xlinks «bitterly disappointed»
Reacting to the news, Xlinks Chair Sir Dave Lewis said the company was «surprised and bitterly disappointed» by the government's decision to walk away from «an opportunity to unlock the substantial value that a large-scale renewable energy project like this would bring».
Lewis underscored that the project «requires no upfront government investment» and had offered a «highly competitive CfD strike price». He added that the international investment community had recognized the project's potential, with over 1.25 billion Moroccan dirhams (£100 million) already invested by major energy players.
«Most importantly, Morocco—a world leader in renewable energy—recognizes the strategic value of interconnections», Lewis noted, adding that Xlinks now has «no choice but to accept DESNZ's decision» and will work «to unlock the potential of the project and maximize its value for all parties in a different way».
Xlinks had already anticipated the government's change in stance, warning it may shift focus to other countries if UK support fell through. In May, the company requested a temporary pause in its application for a Development Consent Order (DCO), a key step for major infrastructure projects, while awaiting clarity on its CfD bid.
For the record, the Morocco-UK Power Project aims to deliver 3.6 GW of dispatchable clean energy from solar, wind, and battery facilities in Morocco. It was expected to reduce UK carbon emissions by 10% and lower wholesale electricity prices by 9.3%.
The project was included in the UK's energy strategy in 2022 and recognized as a nationally significant infrastructure project in 2023.
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