Morocco: United Kingdom Withdraws from Renewable Energy Project Over Risk Concerns

UK withdraws from $33B Morocco-UK power project, citing high delivery and security risks; Xlinks vows to continue despite government exit. Project aimed to supply 8% of UK electricity via undersea cables from North Africa.

The United Kingdom has officially pulled out of a major initiative aimed at transmitting power generated from North Africa’s wind and solar resources via undersea cables, citing concerns over delivery and security risks, according to British energy officials on Thursday.
In a press release, the Department for Energy Security announced that it would no longer back the $33 billion Morocco-UK energy project due to a “high level of inherent risk, related to both delivery and security.”

The project, originally introduced by British company Xlinks in 2021, was part of a broader ambition to establish a global energy network, shifting power from regions where it is cheaper to generate to areas with higher consumption demands. Xlinks estimated the initiative would have supplied up to 8% of Britain’s current electricity demand—enough to power approximately seven million homes.

"There are more robust alternative options that we should focus our attention on," said British Minister Michael Schanks, emphasizing the risk such a project could pose to both taxpayers and energy consumers.

As it stands, the UK is still heavily reliant on natural gas but is targeting a complete transition to renewable energy sources by 2030. Having shuttered its last coal-fired power station last year, the government has shifted toward partially funding several wind, solar, and energy storage initiatives to reach its climate and energy targets.

These large-scale infrastructure ventures typically require some form of government backing or guaranteed fixed rates per megawatt-hour. Xlinks had secured a fixed-price deal and had also attracted financial backing from investors such as TotalEnergies and the Africa Finance Corporation.

Dave Lewis, chairman of Xlinks, expressed strong disappointment in the government's withdrawal.
"We are extremely surprised and bitterly disappointed," he said, asserting that the company’s plan could deliver electricity more quickly and at a lower cost than alternative options, including nuclear energy expansion.

The Xlinks project is one of several efforts demonstrating Europe's growing interest in North Africa as a hub for clean energy. These initiatives explore whether it is more efficient to generate renewable energy under optimal environmental conditions abroad and transport it, rather than relying solely on domestic production.

Xlinks proposed to deliver electricity through nearly 4,000 kilometers of submarine cables encased in protective plastic and steel to minimize energy loss. If realized, it would be the largest undersea interconnector of its kind, though smaller-scale cable links already exist between the UK and continental Europe.

Beyond the UK, similar transmission projects in Tunisia and Egypt aim to connect renewable energy infrastructure to Italy and Greece, underlining a broader Mediterranean strategy for renewable energy cooperation.