‘Bitter disappointment’ as UK rejects support for €29.5B project to import renewable energy from Morocco

June 27, 2025, by Nadja Skopljak

The UK Government has decided to reject the huge £25 billion (around €29.5 billion) project that would import 11.5 GW of solar and wind power from Morocco to the British grid via 4,000-kilometer HVDC subsea cables.

The Xlinks Morocco-UK power project envisions the development of a commercial-scale renewable energy project in Morocco, harnessing solar PV and wind power resources to supply green electricity to the UK through HDVC subsea cables between the two countries. The project would also consist of industrial-scale battery energy storage systems (BESS).

Scheduled to begin operations by the end of the decade, the link has the capacity to supply clean power to the UK for an average of 20 hours a day, enough green energy to power over seven million British homes by 2030.

The UK Government’s Department for Energy Security and Net Zero (DESNZ) announced yesterday, June 26, that it was no longer considering a contract for difference (CfD) for the power project at this time.

According to media reports, the government’s decision was partly motivated by a desire to focus on homegrown energy supplies, although Xlinks had not sought taxpayer funding and had already secured around £100 million from private investors.

Early investors in the project include Abu Dhabi energy firm TAQA, TotalEnergies and the UK’s Octopus Energy.

Xlinks Chair Sir Dave Lewis stated that the project requires no upfront government investment and offered a highly competitive CfD strike price. It would reduce wholesale electricity prices by over 9% in its first year, bring in £20 billion of socio-economic value – including a £5 billion injection into the UK’s green industries, provide 8% of the UK’s electricity needs at a time when demand is rocketing, cut power sector CO2 emissions by circa 10% in its first year; as well as increase energy security through increased diversity of supply and reduced reliance on imported gas.

“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,” Lewis said.

“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.”