UK unlikely to approve contract for $33 billion Morocco-UK renewable energy link

The UK government is not expected to approve a crucial component of a proposed $33 billion renewable energy project that would transmit electricity from Morocco to the UK via an undersea cable, Bloomberg reports, citing a source familiar with the matter.

The project, led by Xlinks—headed by former Tesco CEO Dave Lewis—has already secured investment from major firms including TotalEnergies, Abu Dhabi National Energy Company, and GE Vernova.

To attract further financing, Xlinks has been seeking a government-backed contract that would guarantee a fixed price for the electricity supplied to the UK. These types of contracts are common incentives for offshore wind developments and are considered essential for securing large-scale investment.

The ambitious project aims to harness Morocco’s abundant solar and wind resources to generate enough clean energy to power approximately 7 million homes in the UK. It hinges on the construction of a 2,500-mile subsea cable—one of the longest of its kind—which has raised concerns about technical feasibility and energy security, given the UK’s reliance on a foreign energy source.

While the UK government’s reluctance to provide the price guarantee does not necessarily spell the end of the project, it poses a significant challenge to securing the remaining funding. Xlinks has reportedly been exploring the possibility of redirecting the project toward Germany instead.