UK Withdraws Support for $33 Billion Morocco-UK Power Project

The UK government has formally withdrawn support for the £24 billion (USD 33 billion) Morocco-UK Power Project, a landmark renewable energy venture that aimed to deliver solar and wind electricity from North Africa to Britain via a 3,800 km subsea cable. The project adds to the list of ambitious transcontinental projects that have struggled to make faster headway.

British firm Xlinks, the lead developer of the project, had been awaiting a decision from the government for nearly two years on a proposed 25-year Contract for Difference (CfD). This deal would have guaranteed a fixed price for the electricity supplied from Morocco. However, the Department for Energy Security and Net Zero (DESNZ) confirmed that the government has decided not to support the project.

Massive Project Aimed to Power 7 Million Homes

The Morocco-UK Power Project was set to supply 3.6 GW of firm, baseload electricity – about 8 percent of the UK’s power needs – from 10.5 GW of combined solar and wind capacity in Morocco’s Guelmim Oued Noun region. The power would be transmitted to Devon through subsea cables routed via Spanish and Portuguese waters.

The Morocco-UK Power project had backing from major energy players including TAQA, Octopus Energy, and TotalEnergies. Xlinks had already secured environmental permits and invested over £100 million in pre-development work.

The recent development is a significant jolt to the future of intercontinental energy transmission – especially for projects relying on long-distance subsea cables delivering clean power across continents.

Shift Toward Domestic Energy Security

Energy Minister Michael Shanks told Parliament that the UK’s revised energy strategy will focus on “domestic renewables with greater economic and grid-integration value.”

The decision reflects concerns over the complexity, cost, and regulatory oversight involved in importing electricity from a non-European market. Notably, transmission projects in Tunisia and Egypt are also aiming to link solar and wind farms to Italy and Greece.

The government’s stance highlights growing caution about relying on ultra-long-distance, cross-border power infrastructure at a time of heightened energy security concerns.

Xlinks believed its project would offer electricity at cheaper rates and more quickly than other proposals, including to expand nuclear power. Dave Lewis, Chair of Xlinks and former CEO of Tesco, expressed disappointment, calling the decision “a setback to innovation.” However, he confirmed that the company is now exploring alternative financing routes to keep the project alive without UK government support.

A Broader Energy Investment Landscape

The decision comes at a time of record global investment in clean energy. According to the International Energy Agency (IEA), USD 3.3 trillion will be invested in low-carbon infrastructure in 2025. Despite this global momentum, the UK is signalling a preference for decentralised, locally managed renewable systems over mega-import deals.