The United Kingdom has officially withdrawn its backing for a massive $34bn renewable energy project with Morocco, dealing a major blow to one of the most ambitious intercontinental clean energy undertakings.
The Morocco-UK Power Project, spearheaded by British clean energy company Xlinks, aimed to develop 11.5 gigawatts (GW) of hybrid solar and wind energy in Morocco’s Guelmim-Oued Noun region.
The electricity was to be transmitted to the UK via over 3,800 kilometers of high-voltage subsea cables, supplying power to more than 7 million homes—roughly 8% of the UK’s energy demand.
It was originally classified as a Nationally Significant Infrastructure Project (NSIP) by the UK government in 2023, but the initiative has now been shelved following a strategic reassessment.
UK Energy Minister Michael Shanks confirmed the decision, stating:
“It is not in the UK national interest at this time to continue further consideration of support for the Morocco-UK Power Project.”
While the project had received environmental approvals and was preparing for construction by 2027, the government’s withdrawal has raised serious doubts about its future.
Industry insiders suggest the lack of official backing increases financial risk and discourages investment.
The UK’s concerns reportedly stem from several factors, including the project’s technical complexity, the unprecedented transmission distance, geopolitical uncertainties, and reliance on a non-European partner.
Minister Shanks added that the government’s current priority is “homegrown power,” aligning with a broader energy security strategy that favors domestic generation over international dependency.
Despite the setback, Xlinks has pledged to continue pushing the project forward.
Xlinks Chairman Dave Lewis expressed frustration, stating:
“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.”
“We are now working to unlock the potential of the project and maximize its value for all parties in a different way.”
According to Reuters, more than $137m has already been invested in feasibility and development studies.
Major partners such as TAQA, TotalEnergies, Octopus Energy, and GE Vernova remain involved, and analysts suggest Xlinks could look to alternative European markets, including Germany.
Although the UK was slated to import 3.6GW from the project, the remaining capacity was designated for Morocco’s domestic energy needs.
As of now, Moroccan authorities have not issued an official response.
Meanwhile, Morocco signed a $14bn renewable power project with TAQA in May that include the construction of a 1,400-kilometer high-voltage transmission line with a capacity of 3GW, connecting Western Sahara to central Morocco.