The UK government has declined to enter formal negotiations for a long-term green electricity purchase agreement with Xlinks, the company behind a proposed £20 billion subsea power cable linking Morocco to the UK.
The decision, confirmed earlier this month, effectively rules out a 25-year Contract for Difference (CfD) that Xlinks had sought to secure financing for the project.
The CfD would have guaranteed a fixed price for electricity generated by a 10.5 GW solar and wind facility in southern Morocco and transmitted via a 3,800 km undersea cable to Devon, southwest England.
The Department for Energy Security and Net Zero cited a shift in policy focus toward domestic energy sources.
Industry observers say the move casts uncertainty over the future of the project, which was expected to supply up to 8% of the UK’s electricity needs.
Despite the setback, Xlinks has not abandoned the project, according to Moroccan media. The company is continuing with the UK’s Development Consent Order (DCO) process and is exploring alternative buyers, including large industrial consumers in Europe.
In Morocco, the project remains a strategic priority. Local media have reported that Xlinks is maintaining its development timeline and regulatory engagement. The Moroccan government has not commented publicly on the UK’s decision.
Xlinks executives have previously warned that without UK government backing, the project may seek international partners or shift its export focus.
