Britain Rejects $34 Billion Moroccan Renewable Project

The British government has turned down a substantial Moroccan renewable energy project worth £25 billion aimed at providing solar and wind power to up to seven million UK homes. This move comes as the UK targets a mostly decarbonised electricity sector by 2030. Energy department minister Michael Shanks stated that the government believes domestic projects offer better economic benefits and has halted further support for the Morocco-UK Power Project.

Strategically, the project did not align with the government's mission to enhance homegrown power production. The Morocco-UK initiative, led by Xlinks, intended to transfer Moroccan energy to the UK via what would have been the world's longest subsea power cable. The plan involved 3,800 kilometers of high-voltage direct-current cables stretching from Morocco to southwest England.

Xlinks chairman, Dave Lewis, expressed disappointment over the decision, noting that over £100 million had already been invested in the project development. While there is significant interest from lenders for the construction phase, the project now faces the challenge of unlocking its potential through alternative means. Early investors included significant players such as Abu Dhabi energy firm TAQA, Total Energies, and Octopus Energy.

(With inputs from agencies.)