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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Morocco World
2 days ago
- Morocco World
UK Government Rejects £25 Billion Xlinks Morocco-UK Renewable Energy Project
Marrakech – The British government has decided to reject the major renewable energy project that would have imported solar and wind power from Morocco to the United Kingdom. According to Sky News, Energy Security and Net Zero Secretary Ed Miliband has chosen not to proceed with formal negotiations with Xlinks, a privately owned company seeking a 25-year price guarantee agreement. The £25 billion project, chaired by former Tesco chief executive Sir Dave Lewis, promised to deliver enough renewable energy to meet nearly 10% of the UK's electricity demand. The decision comes as a surprise to energy industry executives, as Xlinks had pledged to provide large quantities of power at approximately half the price of electricity generated by new nuclear power stations. A Whitehall insider indicated that the government's decision was partly motivated by a desire to focus on 'homegrown' energy supplies. This position was reinforced when Miliband stressed the government's 'pragmatic determination' to free itself from fossil fuel market fluctuations through local, clean, and less expensive energy that the country can control. Xlinks had been seeking to agree a 25-year contract for difference with the Department for Energy Security and Net Zero, which would have guaranteed a price for the power generated by the project. The company was looking to secure its business model through this mechanism, also known as a 'compensatory gap contract,' particularly for financiers and funders. The project involved the construction of a 4,000-kilometer cable between Morocco and the Devon coast. It aimed to provide 3.6 gigawatts of clean, on-demand energy from solar, wind, and battery installations in Morocco to the UK, reducing the UK's carbon emissions by 10% and lowering wholesale electricity prices by 9.3%. Market-testing for the project's financing had been significantly oversubscribed, according to sources, with investors including Total, the French energy giant. The company had raised about £100 million in development funding so far. In an interview with Sky News in 2022, Sir Dave said Xlinks enjoyed low geopolitical risk because of Britain's centuries-old trading relationship with Morocco and the north African country's ambitions of growing the energy sector as a share of its exports. 'The Moroccan government has recognized that exporting green [energy] is a very important part of their economic plan going forward, so they have an export strategy,' he said at the time. 'The Sahara desert is probably one of the best places in the world to generate renewable energy from… so you have a very long period of generation. And if you're capturing that energy and adding some battery storage, you can generate energy to cover a little bit more than 20 hours a day, which makes it a fantastic partner for the UK.' Sir Dave had also noted that modern high-voltage cables meant energy could be transported 'over very long distances with very, very few losses.' He explained that the technology risks were relatively small, citing examples of much longer cable links being planned elsewhere in the world. 'The benefit here is that it's proven technology with a very committed reliable partner with a cost profile… that we will never [be able to] match in the UK,' he added. Earlier this year, Sir Dave told The Sunday Telegraph that Xlinks would switch its focus to another country if the UK government did not agree to support the project. The company is now expected to explore other commercial opportunities. In late May, Xlinks requested a pause in the procedure to obtain the Development Consent Order (DCO) while awaiting a response from the British department of energy security and net zero regarding the Contract for Difference. In its letter, Xlinks cited 'exceptional circumstances beyond control' and believed that a pause 'would allow the review process to proceed in the most efficient and rigorous manner possible, while ensuring that the DCO could then progress quickly.' It is worth noting that the Morocco-UK project was integrated into the UK's strategic energy vision in 2022 and recognized as a project of national importance in 2023. A ministerial statement confirming the decision to reject the project is expected later today. Tags: Morocco and UKrenewable energyXlinks project
Ya Biladi
2 days ago
- Ya Biladi
UK snubs Xlinks' Morocco-UK power project over focus on homegrown energy
The British government is reportedly halting formal negotiations with Xlinks, the company behind an ambitious £25 billion (310 billion dirhams) renewable energy project designed to import solar and wind power from Morocco to the UK via a 4,000-kilometre undersea cable. According to British media, Energy Security and Net Zero Secretary Ed Miliband has decided not to move forward with discussions over a 25-year price guarantee agreement with the company. Government sources cited a desire to prioritize «homegrown» energy, a position Miliband reiterated during a speech at the Climate Innovation Forum, part of London Climate Action Week, on Wednesday. In his remarks, Miliband said the UK government has a «hard-headed determination to get off the rollercoaster of fossil fuel markets with cheaper, clean, homegrown energy that we control». Sensing hesitation The decision, expected to be confirmed in a ministerial statement later on Thursday, comes despite strong investor interest in the project. Notably, Xlinks Chairman Sir Dave Lewis, the former CEO of Tesco, had already anticipated a possible government pullback. «If the UK government does not agree to support the project, we will switch our focus to another country», he warned earlier this year. Moreover, the company requested in May a temporary pause in its application for a Development Consent Order (DCO), a legal requirement for major infrastructure projects in the UK, while awaiting a decision on its Contract for Difference (CfD) bid, which would determine the electricity sale price. 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 is expected to reduce UK carbon emissions by 10% and cut wholesale electricity prices by 9.3%. In 2022, the project was included in the UK's strategic energy vision and recognised as a project of national significance in 2023.
Ya Biladi
02-06-2025
- Ya Biladi
Morocco shuts down livestock markets days before Eid al-Adha
Authorities across Morocco have launched a nationwide crackdown, shutting down livestock markets and trading spaces used for selling animals ahead of Eid al-Adha. The move follows King Mohammed VI's decision to cancel animal sacrifices this year, in light of climate challenges and a significant decline in livestock numbers. Local governors and officials have been directed to enforce the ban. In Khénifra, the provincial governor ordered the closure of all weekly markets for sheep sales and prohibited any activities related to the sale and slaughter of sacrificial animals, including pop-up markets that typically spring up in the run-up to the holiday. In Rabat, the Ministry of Interior, working with local authorities, has shut down all seasonal markets for sacrificial animals and banned the sale of related supplies—a blow to many artisans and seasonal traders who rely on Eid for income. Authorities tighten controls ahead of Eid Similar decisions have been announced in Al Hoceima, Tangier, Kelaa des Sraghna, and Inezgane. In Inezgane, authorities have also closed the municipal slaughterhouse and banned the slaughter of sheep and goats. Meanwhile in Casablanca, reports say authorities have seized large quantities of sheep being sold in unauthorized locations, as part of a broader campaign to curb illegal sales and crack down on middlemen who typically exploit the seasonal demand to make quick profits. This year, unlike previous ones, there's been a noticeable absence of commercial activity in the days leading up to Eid, with few seasonal markets or shops selling Eid supplies, observes by Yabiladi. It's not the first time Moroccans have been asked to forgo sacrificing animals for Eid. King Hassan II made the same decision in 1963, 1981, and 1996, for similar reasons. Just a few weeks ago, the Ministry of Agriculture reported that Morocco's livestock herd has shrunk by 38% compared to 2016 levels. To address the shortage, the government has rolled out emergency measures, including scrapping import duties and VAT on imported beef, sheep, goats, camels, and other red meats.
