UK Government Rejects £25bn Renewable Energy Project with Morocco

The UK government has decided not to proceed with a £25bn renewable energy project that aimed to import solar and wind power from Morocco to meet a significant portion of the country's electricity demand. Ed Miliband, the energy security and net zero secretary, has chosen not to enter formal negotiations with Xlinks, a privately owned company, for a 25-year price guarantee agreement. The decision is expected to be confirmed in a ministerial statement on Thursday.

Xlinks, chaired by former Tesco CEO Sir Dave Lewis, had been seeking a long-term contract with the Department for Energy Security and Net Zero (DESNZ) to guarantee a price for the power generated. The government's move to snub Xlinks comes after extensive talks and despite the company's commitment to providing power at a lower cost than new nuclear power stations.

Xlinks had not requested taxpayer funding and claimed it could help address the issue of variable energy supply. The company is now exploring other opportunities after the UK government's decision. Investors in Xlinks include Total, a French energy company, and the project had received significant interest in its financing.

It remains unclear whether concerns about undersea cable sabotage played a role in the government's decision. Sir Dave highlighted the benefits of the project, emphasizing Morocco's renewable energy potential and the advanced technology for long-distance energy transport.

According to the source: Sky News.