Groundbreaking Morocco-UK power project seeks $29.9 billion for world's longest subsea cable

The ambitious Xlinks Morocco-UK power project, set to become the world's longest subsea cable at 4,000 kilometers, is actively seeking political backing to secure its £24 billion ($29.9 billion) investment plan. The project aims to connect Moroccan renewable energy directly to British homes, with approximately £5 billion ($6.2 billion) designated for development in the UK.

Dave Lewis, Xlinks's chairman and former chief executive officer of Tesco Plc, emphasized the project's significant potential. "It offers enough stable, reliable and dedicated supply to power 7 million homes, or 8% of current electricity needs," Lewis stated. "It brings billions in inward investment. It helps reduce wholesale energy prices while cutting emissions."

The initiative encompasses the development of 11.5 gigawatts of solar and wind farm capacity in Morocco's Guelmim Oued Noun region, complemented by a substantial 22.5 GWh/5 GW battery storage system. The power will be transmitted through an undersea cable that follows the continental shelf along Portugal, Spain, and France's coastlines before reaching Devon in southwest England.

Xlinks has set ambitious timelines, targeting a final investment decision this year, with financial close expected in 2026 and construction scheduled to commence before the end of next year. The project is planned to become operational in 2031, shortly after the UK's 2030 deadline for a clean power grid.

The venture has already attracted significant investment from major energy companies. GE Vernova Inc. contributed $10.2 million in early 2024, joining existing investors including France's TotalEnergies SE, Abu Dhabi National Energy Co., and Octopus Energy, the UK's largest retail energy supplier.

While the cable route is longer than a direct path, it has been strategically designed to avoid technical challenges posed by deeper waters in the Bay of Biscay, reaching a maximum depth of 700 meters. Despite traversing Spanish, Portuguese, and French waters, the cable will not have electrical connections to these countries, simplifying the permitting process.

Currently, Xlinks is negotiating with the UK government to secure a power purchase contract at fixed prices. The company indicates that its required power price would be higher than UK offshore wind farms but lower than the rate agreed for the Hinkley Point C nuclear power plant in 2016.

The UK government recognized the project's strategic importance by declaring it one of "national significance" in August 2023. The development is expected to generate over 12,000 temporary and permanent jobs during construction and operation phases.

The timing aligns with Morocco's expanding renewable energy sector. Morocco currently ranks second among African countries driving major renewable energy projects in 2025, following South Africa and ahead of Egypt. The country is progressing toward securing more than 50% of its energy mix from renewable sources by 2025, with plans to achieve 80% by 2030.

The project's advancement now depends on gaining support from UK Prime Minister Keir Starmer and Chancellor Rachel Reeves as they work to strengthen the British economy. According to Lewis, last year's general elections disrupted the cable's timeline, creating a new challenge of convincing a fresh set of ministers in government.