Making Britain a clean energy superpower is one of the Prime Minister’s five defining missions of this Government.
The mission is made up of two pillars: to deliver clean power by 2030 and to accelerate to net zero. The mission focuses on the long-term challenges we face and seeks to capitalise on the huge growth and energy security opportunities that our net zero transition can bring.
Successful delivery of the mission and its objectives will be a shared endeavour requiring extensive engagement and investment from citizens, business and industry. As part of this we have been considering the Xlinks Morocco-UK power project—a private sector-led proposal —to supply clean power to Great Britain via subsea HVDC cables.
Xlinks approached Government requesting support for the project, including a bilaterally negotiated 25-year contract for difference under section 10 of the Energy Act 2013, that would guarantee a set price per MWh of electricity supplied for the life of the contract.
A team of officials within the Department for Energy Security and Net Zero has engaged with Xlinks closely to understand the details of the proposal and has been working across Government to evaluate the viability and merits of the project. This evaluation has considered if and how the project could support the Government’s strategic objectives and the risks which could impact its successful delivery.
The Government have concluded that it is not in the UK national interest at this time to continue further consideration of support for the Morocco-UK power project.
The Government have concluded the project does not clearly align strategically with the Government’s mission to build home-grown power here in the UK.
This would be a first-of-a-kind mega-project with a high level of inherent, cumulative risk—delivery, operational, and security). We acknowledge Xlinks’ excellent work in trying to mitigate these risks where possible but, nevertheless, this remains a factor in decision making.
Ultimately, we have determined that we should focus our attention on stronger alternative options to meet the Government’s plans to decarbonise the power sector and accelerate to net zero at the least risk to billpayers and taxpayers.
The Government also believe that domestic alternatives can see greater economic benefits, whether that through jobs or supply chains.
The Government would like to put on record our thanks to Xlinks and its team for their innovative proposal and their constructive and patient engagement with my Department.
The Government are grateful to the Kingdom of Morocco for its willingness to consider this innovative, first-of-a-kind project, and for the assistance its Ministries have provided my Department over the course of this evaluation. The United Kingdom is committed to further strengthening our partnership and sees Morocco as an increasingly vital trade and investment partner for the UK. Earlier this month, the UK and Morocco entered into an enhanced strategic partnership which saw the Foreign Secretary visit Morocco to sign a series of agreements covering trade, green growth, and security.
The United Kingdom believes Morocco to be an attractive and innovative investment destination and is a key strategic partner for the United Kingdom in the areas of clean energy, decarbonisation, and tackling climate change. UK companies, supported by the UK Government, are looking to increase their investment in the Kingdom. The Government’s decision regarding the Xlinks Morocco-UK power project is not, nor is it indicative of, a reflection or judgment upon the Kingdom of Morocco as either a strategic partner or as a place to do business by the United Kingdom.
The United Kingdom is proud to work with Morocco as a breakthrough agenda partner, where the United Kingdom and Morocco co-lead the power workstream, and to continue supporting its ambitious renewable energy targets through the COP26 Energy Transition Council. The United Kingdom looks forward to identifying and developing new avenues for co-operation in these exciting, and increasingly significant, sectors with the Kingdom of Morocco in the future.
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