FAQ

GENERATING

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 Guelmim-Oued Noun region 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, within a decade 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 within a decade, representing 8% of Britain’s electricity needs.

CONNECTING

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.

TRANSMITTING

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 within a decade. 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.

CREATING

The Morocco – UK Power Project aims to procure the required HVDC cable from XLCC – an independent Scottish HVDC manufacturer that is currently setting up a factory in Hunterston that will create 900 jobs. More broadly, XLCC will establish a new, export-led, green industry in the UK: world-class HVDC subsea cable manufacturing. Its mission is to provide the connectivity required for renewable power to meet future global energy needs.

The supply chain for the Morocco – UK Power Project will create thousands of regional, green jobs and launch a high-growth HVDC cable industry and supply chain in the UK. Investment in Britain’s new HVDC cable industry will also fuel a supply chain ecosystem including steel manufacturing, local fabrication, factory construction and fit-outs, shipbuilding for a cable laying vessel and support services for factories.

The Morocco – UK Power Project was founded by serial entrepreneur and Group CEO, Simon Morrish. The Project’s executive chairman is former Tesco chief executive Sir Dave Lewis; the vice-chair is Paddy Padmanathan, former CEO and president of ACWA Power; and Sir Ian Davis, former chairman of Rolls-Royce Holdings, is a non-executive director.

The Morocco – UK Power Project has a wide group of UK and international investors, including TAQA, the Abu Dhabi National Energy Company, TotalEnergies and Octopus Energy.