The UK government should not support Xlinks’ ambitious subsea power cable project. This project was designed to transmit substantial amounts of clean energy from Morocco to the UK. The project includes the installation of 4,000 kilometers of high-voltage direct-current (HVDC) cables. The project hopes to provide power from Morocco’s Tan-Tan province to seven million UK households.
Xlinks has lobbied the UK government for guarantees of backing for their project. This program consists of a 25-year Contract for Difference (CfD), which was bilaterally negotiated pursuant to the Energy Act of 2013. In 2023 the project was awarded Nationally Significant Project designation. This acknowledgment highlights its potential to deeply influence the future energy transitions in both countries.
Government’s Strategic Focus
That, one hopes, is the end of Xlinks’ project in Britain. They decided that it was inconsistent with their mission to favor homegrown energy production. Departmental officials strongly suggested that they would like to see more domestic energy projects producing those economic benefits.
The federal government has an ambitious plan to decarbonize the electricity sector by 2030. They are focusing on local generation capacity as opposed to counting on international interties. Minister for Energy Under Secretary of State Michael Shanks stated, “Making Britain a clean energy superpower is one of the Prime Minister’s five defining missions of this Government.”
Xlinks Response
Xlinks said it was “extremely disappointed” with the government’s move. The chairman of Xlinks, Dave Lewis, expressed their feelings in this statement.
“We are hugely surprised and bitterly disappointed that the UK Government would choose to walk away from an opportunity to unlock the substantial value that a large-scale renewable energy project like this would bring, not least the opportunity to lower the wholesale price of electricity, which is currently one of the highest in Europe.” – Dave Lewis
Lewis pointed out that the project would have been able to provide a guaranteed levelized price of electricity per megawatt-hour (MWh) over the term of the agreement. This would be a boon to consumers and a boost to energy security.
Future Considerations
Xlinks isn’t letting a few blows stop them. The company is 100% committed to working through the challenges to deliver its vision of long-distance, clean electricity generation and connecting Morocco to the UK. The unusual ruling by the Department for Energy Security and Net Zero (DESNZ) has implications. She said, Xlinks should respect this decision.
The rejection marks a significant moment in the UK’s energy policy landscape as it navigates its path towards a sustainable future. The new administration’s emphasis on deploying domestic energy resources at an accelerated pace has created both challenges and opportunities for international renewable energy partnerships.