Xlinks has criticised the UK Government’s decision to drop consideration of a Contract for Difference for its Morocco-UK Power Project, calling the move a missed opportunity for energy security and decarbonisation.
The Department for Energy Security and Net Zero told the developer it is “no longer considering” CfD support for the £20 billion scheme.
Xlinks chair Sir Dave Lewis said the company is “hugely surprised and bitterly disappointed”.
He said the opportunity would have “lowered the wholesale price of electricity, which is currently one of the highest in Europe”.
The 3.6GW solar-and-wind complex in Morocco would have delivered power to Devon via a 3800 km subsea cable.
Xlinks said the project was designated nationally significant in 2023 and required no upfront government funding.
Lewis said the proposed CfD strike price was “highly competitive” and would reduce wholesale electricity prices by more than 9% in its first year.
The developer calculated £20 billion in socio-economic value, including a £5 billion boost to UK green industries.
It estimated the link would provide 8% of UK electricity demand at a time of “rocketing” consumption.
Xlinks forecast a 10% cut in power-sector CO₂ emissions during the first year of operation.
Lewis said the link would “address sharp drops in UK power generation when the wind isn’t blowing or the sun isn’t shining”.
The company argued the cable would arrive “much sooner and at significantly lower cost than the nuclear alternative”.
More than £100 million has already been spent on development by private investors, according to Xlinks.
Lewis said lender appetite for the construction phase “is greater than we require”.
The project offered “increased diversity of supply and reduced reliance on imported gas”, he added.
Xlinks praised Morocco’s “vision, framework and environment” for international energy collaboration.
Lewis said the developer now has “no choice but to accept” the government’s position.
Xlinks will pursue “alternative routes” to unlock the project’s potential and “maximise its value for all parties”.