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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Morocco World
5 hours ago
- Morocco World
Ecuador Opens First Embassy in Morocco, Marks New Era in Bilateral Ties
Rabat – Ecuador officially opened its first embassy in Morocco on Friday, marking a new chapter in the growing relationship between the two countries. The opening of the embassy comes after Ecuador's decision in October 2024 to cut all ties with the self-styled 'Sahrawi Arab Democratic Republic' and strengthen its diplomatic ties with Morocco, notably backing the Moroccan position on the Western Sahara conflict. The ceremony was attended by Moroccan Foreign Minister Nasser Bourita and Ecuadorian Foreign Minister Gabriela Sommerfeld. Morocco now hosts 165 diplomatic missions, including 50 from international organizations, Bourita said. He noted that 14 Latin American embassies are based in Rabat, arguing that this positions Morocco as a bridge between Latin America and Africa. Moroccan FM Nasser Bourita speaking at the inauguration of the embassy Bourita spoke of the strategic importance Morocco places on its relations with Latin America, saying the partnership with Ecuador reflects a 'win-win' South-South cooperation model. The two countries, he added, aim to work together across many fields to benefit both nations and their people. He also commended Ecuador for appointing an ambassador to lead the new diplomatic mission in Rabat. Meanwhile, Sommerfeld described the embassy opening as the start of a new dynamic in Ecuador-Morocco relations. She expressed her country's commitment to deepening ties in key sectors and sharing expertise in different areas. Sommerfeld noted that this is Ecuador's first embassy in the Maghreb region and said it could serve as a 'gateway to African markets.' The embassy opening followed a meeting between Bourita and Sommerfeld, during which the Ecuadorian minister confirmed her country's support for Morocco's autonomy plan for Western Sahara. Ecuador considers the 2007 Moroccan proposal as the basis for a lasting political solution to the conflict.
Ya Biladi
17 hours ago
- Ya Biladi
Xlinks officially withdraws UK application for Morocco-UK energy cable
Xlinks has officially withdrawn its application for its MAD 310 billion (£25 billion) renewable energy project, which aimed to supply solar and wind power from Morocco to the UK via a 4,000-kilometre undersea cable. In a letter submitted to the British Planning Inspectorate on July 1, the company stated it was «formally withdrawing the application submitted in November 2024, which was accepted for examination in December 2024». This move follows a recent announcement by the UK Department for Energy Security and Net Zero (DESNZ), which said it was «no longer considering a negotiated Contract for Difference (CfD) for the Project». The CfD mechanism would have guaranteed a minimum price for electricity imported via the Morocco-UK cable. Xlinks explained that due to the current «changes», it does «not believe that proceeding with the Examination at this stage is advisable». Last week, Xlinks Chair Sir Dave Lewis said he was «surprised and bitterly disappointed» by the government's decision to walk away from the project. The company had anticipated the shift in government position. In May, it requested a temporary pause in its Development Consent Order (DCO) application, a critical step for large infrastructure projects, while awaiting clarity on the CfD process. Xlinks had also expressed frustration over delays in receiving UK government backing, warning it might shift the initiative to another country. For the record, The Morocco–UK Power Project aims to deliver 3.6 GW of dispatchable clean energy from solar, wind, and battery installations in Morocco. It was expected to reduce UK carbon emissions by 10% and cut wholesale electricity prices by 9.3%.
Ya Biladi
a day ago
- Ya Biladi
UK officially drops Morocco-UK Xlinks cable project, saying it's not in its «national interest»
The British government has officially withdrawn support for Xlinks' MAD 310 billion (£25 billion) renewable energy project, which aimed to supply solar and wind power from Morocco to the UK via a 4,000-kilometre undersea cable. 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.
