In a move with significant implications for transcontinental energy trade, the UK government has formally withdrawn support for the $34.4-billion Morocco-UK Power Project, a mega-renewables plan that would have delivered solar and wind electricity via a 3,800 km undersea cable from the Sahara Desert to Devon, Reuters reports.
The project, led by British firm Xlinks and backed by TAQA, Octopus Energy, and TotalEnergies, aimed to supply 8% of the UK’s electricity needs, enough for over 7 million homes, with zero-carbon power. But Energy Minister Michael Shanks told Parliament on Wednesday that the UK’s revised energy security strategy prioritizes “domestic renewables with greater economic and grid-integration value”.
The Morocco-UK project would have been one of the longest and most ambitious subsea transmission efforts globally. It planned to draw up to 10.5 gigawatts of solar and wind energy from Morocco’s Guelmim Oued Noun region, delivering 3.6 gigawatts of steady baseload power to the UK. The cable route was to pass through Spanish and Portuguese territorial waters, requiring multi-jurisdictional coordination. Xlinks had secured initial environmental permits and aimed to begin construction by 2027, pending final investment decisions.
Despite years of feasibility studies and over £100 million in preliminary investment, the government’s shift reflects mounting concern over geopolitical dependency, cost exposure, and the practicality of ultra-long-distance transmission. Critics also questioned the regulatory oversight of a power system routed through Morocco, a non-European market.
Xlinks Chair Dave Lewis, former Tesco CEO, called the decision “a setback to innovation,” but confirmed the company is seeking alternative financing routes to resurrect the vision.
The move comes amid a record year for global clean energy spending.
According to the IEA, $3.3 trillion will be invested in low-carbon infrastructure worldwide in 2025, two-thirds of it in renewables, grids, nuclear, and storage. Yet, the UK’s choice signals a new caution toward mega-export projects, favoring resilient, distributed domestic systems over cross-border dependence.
By Charles Kennedy for Oilprice.com
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