British company Xlinks has announced the suspension of its subsea electricity interconnection project between Morocco and the United Kingdom, citing the prolonged absence of a tariff agreement with British authorities. The project aimed to export electricity generated from Moroccan renewable sources to the UK grid via a 3,900-kilometre cable.
Xlinks, which specialises in long-distance energy transmission infrastructure, considers it premature to proceed with local procedures—particularly the Development Consent Order (DCO) application—without prior approval of a Contract for Difference (CfD). This mechanism would guarantee a fixed resale price for electricity over a 25-year period, considered essential for the economic viability of the investment.
£8bn investment still pending
According to Dave Lewis, Chairman of Xlinks, administrative delays in London are hindering the mobilisation of the £8bn ($10.7bn) needed to implement the project. In April, he stated that “investors are lining up” to finance the infrastructure, but that these commitments remain conditional on securing a stable contractual framework.
Xlinks’ proposed tariff, ranging between £77 and £87 (approximately $104 to $117) per megawatt-hour, has yet to receive a formal response from British authorities. This situation is prompting the company to reconsider its geographic target and explore the option of connecting to Germany instead, seen as more favourable in regulatory terms.
Potential consequences for Morocco
If the project is redeployed, Morocco could forfeit several billion dollars in investment and the creation of nearly 10,000 jobs, according to Xlinks estimates. The project aligned with Morocco’s national targets to reach 52% renewable energy in its electricity mix by 2030.
The current deadlock puts at risk a strategic energy cooperation between North Africa and Europe, at a time when transcontinental connectivity initiatives are increasingly shaped by political uncertainties and fiscal trade-offs within several European states.
