Xlinks has expressed disappointment over the UK government’s decision to withdraw consideration of a Contract for Difference (CfD) for its proposed Morocco-UK Power Project, describing the move as a setback for energy security and decarbonisation.
The Department for Energy Security and Net Zero informed the developer that it is “no longer considering” CfD support for the £20 billion project, which would deliver 3.6 gigawatts of solar and wind power from Morocco to Devon via a 3,800 km subsea cable.
“We are hugely surprised and bitterly disappointed,” said Sir Dave Lewis, chair of Xlinks. He added that the project could have “lowered the wholesale price of electricity, which is currently one of the highest in Europe.”
Designated a nationally significant infrastructure project in 2023, the Morocco-UK link was designed to operate without upfront government funding. Xlinks had proposed a CfD strike price it described as “highly competitive,” estimating it would reduce wholesale electricity prices by more than 9% in the first year.
The company also projected the link would supply 8% of the UK’s electricity demand and cut power-sector CO₂ emissions by 10% in its first year. It estimated £20 billion in total socio-economic value, including a £5 billion contribution to UK green industries.
Lewis said the project would help manage “sharp drops in UK power generation when the wind isn’t blowing or the sun isn’t shining” and argued that the cable would be delivered “much sooner and at significantly lower cost than the nuclear alternative.”
More than £100 million has already been invested in project development by private backers, with Lewis stating that lender interest in the construction phase “is greater than we require.”
Despite the setback, Xlinks said it would now explore “alternative routes” to advance the project and “maximise its value for all parties.” The company also praised Morocco’s “vision, framework and environment” for supporting international energy cooperation.
