Minister for Energy (): Making Britain a clean
energy superpower is one of the Prime Minister's five defining
missions of this Government.
The Mission is made up of two pillars, to deliver clean power by
2030 and accelerate to net zero. The Mission focusses on the
long-term challenges we face and seeks to capitalise on the huge
growth and energy security opportunities that our net zero
transition can bring.
Successful delivery of the Mission and its objectives will be a
shared endeavor requiring extensive engagement and investment
from citizens, business and industry. As part of this we have
been considering the Xlinks Morocco-UK Power Project, a private
sector led proposal, to supply clean power to Great Britain via
sub-sea HVDC cables.
Xlinks approached government requesting support for the project,
including a bilaterally negotiated 25-year Contract for
Difference under section 10 of the Energy Act 2013, that would
guarantee a set price per MWh of electricity supplied for the
life of the contract.
A team of officials within the Department for Energy Security and
Net Zero has engaged with Xlinks closely to understand the
details of the proposal and has been working across government to
evaluate the viability and merits of the project. This evaluation
has considered if and how the project could support the
government's strategic objectives and the risks which could
impact the successful delivery of it.
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.
The government has concluded the project does not clearly align
strategically with the government's mission to build homegrown
power here in the UK.
This would be a first of a kind mega project which has a high
level of inherent, cumulative risk (delivery, operational, and
security). We acknowledge the excellent work of Xlinks on trying
to mitigate these risks where possible but nevertheless, this
remains a factor in decision-making.
Ultimately, we have determined there are stronger alternative
options that we should focus our attention on to meet the
government's plans to decarbonise the power sector and accelerate
to net zero at least risk to billpayers and taxpayers.
The government also believes that domestic alternatives can see
greater economic benefits whether that be through jobs or supply
chains.
The government would like to put on record its thanks to Xlinks
and their team for their innovative proposal, and their
constructive and patient engagement with my department.
The government is grateful to the Kingdom of Morocco for its
willingness to consider this innovative and first-of-a-kind
project, and for the assistance its Ministries have provided my
department over the course of this evaluation. The United Kingdom
is committed to further strengthening our partnership and sees
Morocco as an increasingly vital trade and investment partner for
the UK. Earlier this month, the UK and Morocco entered into an
enhanced strategic partnership which saw the Foreign Secretary
visit Morocco to sign a series of agreements covering trade,
green growth, and security.
The United Kingdom believes Morocco to be an attractive and
innovative investment destination and is a key strategic partner
for the United Kingdom in the areas of clean energy,
decarbonisation, and tackling climate change. UK companies,
supported by the UK Government are looking to increase their
investment in the Kingdom. The government's decision regarding
the Xlinks Morocco-UK Power Project is not, nor is it indicative
of, a reflection or judgement upon the Kingdom of Morocco as
either a strategic partner or as a place to do business by the
United Kingdom.
The United Kingdom is proud to work with Morocco as a
Breakthrough Agenda partner where the United Kingdom and Morocco
co-lead the Power workstream, and to continue supporting its
ambitious renewable energy targets through the COP Energy
Transition Council. The United Kingdom looks forward to
identifying and developing new avenues for cooperation in these
exciting, and increasingly significant, sectors with the Kingdom
of Morocco in the future.
