© Supplied by Xlinks 
The UK government has rejected Xlinks’ contract for difference (CfD) application for the Morocco-UK power project.
The project would see the UK import 11.5 GW of solar and wind power from 2,300 miles away via subsea cables.
Xlinks chairman Sir Dave Lewis said he was “surprised” by the rejection and that his firm is “bitterly disappointed”.
He added that his project would “lower the wholesale price of electricity” at a time when the UK’s bills are among the highest in Europe.
The firm’s chairman argued that the large-scale project would drop energy prices in the UK by 9% in its first year of operation while providing a “£5 billion injection into the UK’s green industries” and “£20bn of socioeconomic value”.
Energy department minister Michael Shanks said: “The government has 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.”
Lewis claimed that his application offered a “highly competitive CfD strike price” for a project that required “no upfront Government investment”.
Cheaper and quicker than nuclear?
The chairman continued to big up the benefits of his proposed project, saying “it would address the challenge of sharp drops in UK power generation when the wind
isn’t blowing, or the sun isn’t shining.”
He took aim at the country’s nuclear ambitions, which have been ramping up in recent weeks.
Lewis said that the power he would provide would be cheaper than that produced by nuclear and would also connect to the grid sooner.
The chairman previously claimed that a lack of commitment from the UK government for the UK-Morocco power project could send the project overseas. Following this decision, Xlink now has the opportunity to pursue this option.
© Supplied by XlinksThe business leader has previously suggested that if the UK didn’t play ball, he would shop around and offer the project to Germany.
The project has been progressing as it awaits government backing.
Late last year, the firm’s chief executive, James Humfrey, told Energy Voice that Xlinks has three survey vessels in operation, which were taking part in “some of the environmental studies as part of the installation permit work that will come next year”.
Lewis said: “The international investment community identified the potential of the opportunity.
“Over £100m from leading energy sector players has already been spent on project development, and demand from lenders to participate in the construction phase is greater than we require.”
TotalEnergies, Octopus Energy, Abu Dhabi’s TAQA, GE Vernova and the Africa Finance Corporation (AFC) have all provided financial backing for the ambitious initiative.
“Ultimately, we have no choice but to accept DESNZ’s decision,” Lewis added.
“We are now working to unlock the potential of the project and maximise its value for all parties in a different way.”
