Analysis by AFRY* shows the Project will bring £17.3bn of first order net societal impact to the UK.

The Project is expected to invest c.£5bn in UK procurement across a range of workstreams.

While the UK government will ultimately set the CfD strike price, our current guidance is a strike price of £70-80/MWh (at 2012 prices), which is significantly lower than that of projects with a similar energy profile.

By reducing wholesale electricity prices by 9.3% (in the first year of operation), the Project will help to create downward pressure on end user energy bills. It will also help to stabilise pricing, by displacing imported gas.

It also bolsters the government’s climate leadership ambitions by reducing Britain’s power sector CO2 emissions by around 10%.

The Project will support the development of the world’s largest HVDC cable factory in Hunterston, Scotland, with its significant demand underpinning expansion.

*AFRY is a global engineering, design and advisory company specialising in sustainability, energy and infrastructure.

The Morocco – UK Power Project has 3.6GW connection agreements with National Grid in North Devon and is designated as a project of National Significance.

It will operate on an open book basis to demonstrate transparent pricing and value for money, coupled with a gain share mechanism to ensure consumers benefit from all upside.

The Project has received competitive tender responses on almost all its capital expenditures, giving confidence in the programme’s deliverability and value for money.

The underground 14km cable route in Devon has already undergone public consultation (see our Devon page, here).

The Morocco – UK Power Project does not require government investment, and any deliverability risk is borne by Xlinks.

Appointed financial advisors, J.P. Morgan and Societe Generale, have confirmed the Project is well-positioned to secure the required financing. Recent market engagement confirmed appetite from commercial banks, ECAs, DFIs and institutional lenders.

So far, the Project has attracted c.£100m in development funding from world-class investors like TAQA, Total Energies, Octopus, GE Vernova and AFC, each of whom has done extensive due diligence.

Xlinks has built a world-class team with a demonstrable track record in delivering large-scale projects of significance, including: the North Sea Link, Ouarzazate Solar Power Station, and multi-billion financings across EMEA.

The Board has significant energy, infrastructure and general business experience, while deep experience in company and project design, development and operation can be found across the business.

Robust project management structures with a focus on risk management have been implemented, and national best-practice security procedures are in place.

Morocco is a leader in the development of large-scale and innovative renewable energy projects, with a highly recognized in-country expertise.

It is also blessed with excellent and consistent solar and onshore wind resources thanks to its consistent daylight hours, high solar intensity, and wind speed. It has the third-highest Global Horizontal Irradiance (GHI) in North Africa. It is 20% greater than Spain (the highest GHI in Europe) and more than twice that of the UK. It also has high solar intensity (34% solar load vs. 11% in the UK) and wind speed reliability (52% wind load vs. 31% average in the UK).

The solar and wind farms will be located in the Province of Tan-Tan in the south of Morocco. The area of the desert required is roughly the size of greater London.

The Morocco – UK Power Project aligns with the Moroccan state’s strategy to accelerate the development of a new clean energy industry, to deliver both its domestic energy agenda, and to unlock export value from its substantial renewable energy resources.

The Project will unlock substantial export value for Morocco and creates a new, guaranteed revenue stream. It also accelerates the industrial development of the renewable energy sector with many components to besourced locally. The Project will also act as a lighthouse for further project, showing what is possible. The construction of the solar and wind farms is expected to create around 10,000 new jobs in Morocco during construction, and 2,000 permanent roles once the project is in operation.

In addition, Xlinks First has adopted an inclusive approach toward the local population and will ensure, thanks to local socio-economic development programs, that local populations will benefit from the Project from day one of operation and over the longer term.

A diverse mix of reliable, affordable and green power is key to keeping Britain running in the coming years as our energy system, transport and homes become increasingly electrified. The Morocco – UK Power Project will be an important contributor to a well-balanced grid.

The Morocco – UK Power Project will use proven solar, wind and subsea cable technology to power the transition to net zero. A 22.5GWh/5GW battery facility will provide sufficient storage to reliably deliver a dedicated, near-constant source of flexible and predictable clean energy to the UK.

The power to be generated is enough to provide affordable, clean power equivalent to over 7 million British homes, representing 8% of Britain’s current electricity needs.

The HVDC cables used in the Morocco – UK Power Project will use proven technologies, similar to those used in existing international subsea connections e.g., North Sea Link and Viking Link. Just as with existing projects, the cables for the Morocco – UK Power Project will be laid by a specially adapted cable-laying vessel.

Safety and security standards will be similar to subsea cable projects operated by others such as National Grid. We have undertaken rigorous and robust security and safety reviews on the project, which are informing the design process.

Environmental impacts are considered to be very low. The subsea cables have a circumference similar to a dinner plate and require three-metre trenches along the seabed as they are laid, which are then filled in. This is similar to the process used in the laying of the fibre optic cables that already crisscross the globe to provide communications connectivity. As the cables are buried, they do not interfere with the seabed ecosystem once in place.

Our vision is to unlock the potential of remote renewable energy generation and enable markets with high energy demand to diversify their energy supply, increase resilience and faster decarbonise their economies to achieve net zero emissions.

A diverse mix of reliable, affordable, and green power is key to keeping Britain running in the coming years as our energy system, transport and homes become increasingly electrified. The Morocco – UK Power Project will be an important contributor to a well-balanced grid. The power generated will be enough to provide 8% of Britain’s current electricity needs.

The cable will travel on land from the generation site in the Guelmim-Oued Noun region of Morocco and enter the sea northwest of the city of Tan-Tan. It will then follow the Moroccan coastline up the Strait of Gibraltar and make its way up the coast of Portugal, Spain and France before going around The Isles of Scilly. The cable will then cross through UK territorial waters before landing in Devon, west of Bideford.

The Project will harness renewable energy in Morocco to provide 3.6GW of firm, flexible and affordable electricity for over 19 hours a day (covering high-demand times), providing affordable, near-constant, power generated from clean wind and solar.

Upon completion, the Morocco – UK Power Project will power the equivalent of over 7 million British homes, representing 8% of Britain’s domestic electricity needs.

The Morocco – UK Power Project is a privately funded infrastructure project.
In August 2023, the project was declared a project of “national significance” by Claire Coutinho, the UK’s Secretary of State for Energy Security and Net Zero.

The project will generate revenue via the Contracts for Difference (CfD) scheme, the UK government’s mechanism for supporting low-carbon electricity generation. CfDs incentivise investment by providing developers of low-carbon projects with direct protection from volatile wholesale prices, and they protect consumers from paying increased support costs when electricity prices are high. Developers of renewables projects that receive a CfD, enter a contract with the Low Carbon Contracts Company (LCCC), a government-owned company. You can read more here.

A CfD ‘strike price’ reflects the cost of investment in a low-carbon technology. It is set at the time the contract is agreed – expressed as a 2012 price to allow for cost/value comparison of different projects over time – and is uprated for inflation annually. CfD generators are paid the difference between the ‘strike price’ and the ‘reference price’ (the average market price for electricity in Great Britain). This helps to create a relatively stable revenue stream around the strike price. When the market price for electricity generated by a CfD Generator is below the agreed strike price, payments are made by LCCC to the generator to make up the difference. Conversely, when the market price is above the strike price, the CfD Generator pays LCCC the difference.

When we look at our internal cost projections as they stand today, we would envisage a strike price range of £70-80 per MWh (2012 pricing), but ultimately the strike price will be determined by DESNZ, who are currently evaluating the project.

Agreement has been reached with National Grid for two 1.8GW connections.

The cable will come on shore in Devon, where a converter station will connect the clean power to Britain’s energy grid. Xlinks First has worked closely with National Grid to choose this location as it will enable connection at the earliest possible date, and so helping to provide affordable, clean power for consumers.

The connection agreement with National Grid allows the Morocco – UK Power Project to start transmitting through the first 1.8GW system from early 2030s. The UK Climate Change Committee (CCC) says the UK needs a net-zero electricity network by 2035 to be on track for a net-zero economy by 2050.