LONDON, June 26 (Reuters)
The recent move by the UK government to decline the proposed £25 billion Morocco-UK subsea energy connection has brought a lot of controversy to the renewable energy industry. This grand vision that was to provide solar and wind energy to millions of British households through the Saharan region of Morocco was perceived by many as a game-changer for the UK’s clean energy plans. The decision to focus on national projects rather than cooperation with other countries has caused uncertainty regarding the future of the question of the UK energy policy, as well as its possible consequences regarding the overall sustainability and energy security. The rejection has also raised the issue of readiness of the UK to adopt novel cross-border solutions and the possible loss of state collaboration with international partners.
UK turns down Morocco-UK Power Project
Britain has rejected a 25 billion pound ($34.39 billion) Moroccan renewable energy project that would have used solar and wind power from the Sahara to supply up to seven million UK homes.
The British government, which is aiming to largely decarbonise its electricity sector by 2030, said on Thursday it believed domestic projects could offer better economic benefits.
“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,” Energy Department Minister Michael Shanks said in a written statement to parliament.
He also said the project did not clearly align strategically with the government’s mission to build homegrown power in the UK.
Project scope and industry response
Xlinks’ Morocco-UK power project would have tapped Moroccan renewable energy via what would have been the world’s longest subsea power cable.
The plan involved building 3,800 kilometres (2,361 miles) of high-voltage direct current subsea cables from Morocco to southwest England. The company had been seeking a guaranteed minimum price for the electricity supplied, known as a contract for difference, from Britain’s government.
Xlinks chair, former Tesco chief executive Dave Lewis, said the company was bitterly disappointed by the decision.
“Over 100 million pounds ($137.38 million) 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,” he said in an emailed statement.
“We are now working to unlock the potential of the project and maximise its value for all parties in a different way,” Lewis said.
The project had originally been designated by the previous Conservative government as being of “national significance” but faced funding and regulatory hurdles.
The early investors in the project included Abu Dhabi energy firm TAQA.AD, Total Energies TTEF.PA and Octopus Energy, but the company has not disclosed the exact percentages each company holds.
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Broader implications for UK energy policy
Although this strategy might be effective in bringing economic gains in the short run, there is some claim that this may only restrict the access of the UK to more diverse and perhaps cheaper sources of renewable energy in the future. The dispute involving the Morocco-UK connection brings out the issue of how countries would balance their national strategy and international collaboration in their transition to clean energy.
The official walk-out by the UK on the Morocco-UK subsea energy connection will play a major role in the UK’s renewable energy policy. Although the government still insists that the local projects are more economically and strategically advantageous, the development has made the leaders of the industry and investors seek other options for tapping the potential of the project. With the UK still targeting meeting decarbonisation objectives, one can expect that international energy alliances and national concerns will still be present on the stage of the country’s energy strategy.