UK Government Refuses Support for £24bn Morocco-UK Solar Power Project by Xlinks

Image: The Xlinks interconnector route would skirt Portugal, Spain and France before linking to the UK / Credit: Xlinks

The UK Government has decided not to move forward with a contract for difference (CfD) for the ambitious £24 billion Morocco-UK Power Project proposed by Xlinks, a move that sends a clear message about its current energy priorities.

In a recent statement, the Department for Energy Security and Net Zero (DESNZ) confirmed that it is “not actively considering” the support mechanism that Xlinks had requested—a 25-year, bilaterally negotiated CfD under Section 10 of the Energy Act 2013. Had it been approved, the contract would have guaranteed a fixed price per megawatt-hour (MWh) of electricity over a quarter-century, providing long-term price certainty for a project touted as groundbreaking in scale and innovation.

Xlinks’ proposal involved laying 4,000 kilometers of high-voltage direct current (HVDC) subsea cables, linking solar and wind farms in Morocco’s Tan-Tan region directly to the UK. The project, according to the company, could deliver enough clean electricity to power seven million British homes.

Despite the project’s potential, DESNZ maintained that backing domestic renewable initiatives aligns more closely with the UK’s national interests. In its view, homegrown projects are better positioned to deliver near-term economic gains and to contribute more directly to the government’s 2030 decarbonisation goals for the power sector.

Minister for Energy Under Secretary of State Michael Shanks said in a written statement to parliament: “Making Britain a clean energy superpower is one of the Prime Minister’s five defining missions of this Government. As part of this we have been considering the Xlinks Morocco-UK Power Project, a private sector led proposal, to supply clean power to Great Britain via sub-sea HVDC [high-voltage, direct current] cables.

“The government has concluded the project does not clearly align strategically with the government’s mission to build homegrown power here in the UK.

“Ultimately, we have determined there are stronger alternative options that we should focus our attention on to meet the government’s plans to decarbonise the power sector and accelerate to net zero at least risk to billpayers and taxpayers.”

The Xlinks project centers around a bold plan: laying 4,000 kilometers of high-voltage direct current (HVDC) subsea cables to carry renewable electricity all the way from Morocco’s Tan-Tan province to the UK. If realised, the project could deliver enough clean power to supply up to seven million British homes.

Reacting to the government’s decision, Xlinks Chairman Dave Lewis voiced his disappointment. He pointed out that the proposal didn’t ask for direct public funding, only a stable pricing mechanism through a competitive contract for difference. “This was a low-risk, high-impact opportunity for the UK,” Lewis said, “and it’s frustrating to see it dismissed despite the value it could have delivered.”

Lewis said: “We are hugely surprised and bitterly disappointed that the UK Government would choose to walk away from an opportunity to unlock the substantial value that a large-scale renewable energy project like this would bring, not least the opportunity to lower the wholesale price of electricity, which is currently one of the highest in Europe.

“We developed this project to rapidly realise the potential of long-distance electricity generation and connection for the UK and Morocco – potential that was recognised by the UK in 2023, when it was designated as a Nationally Significant Project.

“Ultimately, we have no choice but to accept DESNZ’s decision. We are now working to unlock the potential of the project and maximise its value for all parties in a different way.”