Doha \u2013 Xlinks, the British company behind the ambitious project to connect Morocco and the United Kingdom via undersea power cables, has temporarily paused its Development Consent Order (DCO) examination process.<\/p>\n
In a May 14 letter<\/a> to the UK Planning Inspectorate, the company requested this halt while awaiting a crucial decision on its Contract for Difference (CfD) from the UK Department of Energy Security and Net Zero.<\/p>\n The pause comes as the company seeks financial certainty through a CfD that would guarantee fixed electricity prices for 25 years. According to company sources close to the matter, this is \u201ca pause in the DCO process, not a suspension,\u201d aimed at preventing \u201cmisalignment of different project development stages.\u201d<\/p>\n The main issue holding up the project is the need for price certainty. Xlinks is seeking a guaranteed price of \u00a377 per megawatt-hour for solar energy and \u00a387 for wind energy produced in Morocco\u2019s Guelmim-Oued Noun region. Without this financial commitment, investors are reluctant to move forward with the necessary funding.<\/p>\n \u201cWithout this clear commitment on a stable price, Xlinks\u2019 financial partners are hesitant to inject the necessary investments,\u201d the company stated.<\/p>\n Dave Lewis, Xlinks\u2019 chairman, has expressed frustration over the delays and frequent ministerial changes in the UK\u2019s energy department. In a January interview with Bloomberg, Lewis noted<\/a> that the undersea cable project could generate up to \u00a324 billion (MAD 300 billion) in investments, with approximately \u00a35 billion in Great Britain alone.<\/p>\n The project was designated as a \u201cnationally significant infrastructure project\u201d by the British government in 2023, highlighting its strategic importance to the UK\u2019s energy security. It aims to provide power to nine million British households and reduce CO2 emissions from the UK energy sector by 10%.<\/p>\n Read also: <\/b>Former UK Minister: Morocco Key Player in Britain\u2019s Clean Energy Mission<\/b><\/a><\/p>\n The proposed 3,900-kilometer cable would traverse<\/a> Portuguese, Spanish, and French coastal waters to connect Morocco\u2019s renewable energy facilities with the British grid. If completed, it would deliver 3.6 gigawatts of electricity generated from solar parks, wind farms, and battery storage systems.<\/p>\n Facing continued delays, Xlinks has begun exploring alternatives. Lewis told<\/a> The Telegraph in early April that if the British government\u2019s response was further delayed, shareholders might redirect resources toward other projects under development, including a potential Morocco-Germany connection.<\/p>\n The company opted for direct negotiations with the government rather than going through a tender process, which has contributed to the delays. Political instability in the UK has further complicated negotiations.<\/p>\n