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Economy

Reasons behind UK’s withdrawal from Morocco-UK electricity project

Friday 27 June 2025 - 12:05

By: Zahouani Ilham

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An economic expert, Yassin Alia, highlighted the key reasons for the UK government's decision to withdraw its support from the electric interconnection project with Morocco. He explained that this move reflects a shift in the UK's energy policy, despite the project having been promoted for years with the goal of supplying electricity to around seven million British homes.

In an interview, Alia pointed out that this decision comes amid a rapidly changing global context, where many countries are now prioritizing energy policies based on their own national resources. This approach reinforces the concept of energy sovereignty. He noted that relying on electricity produced abroad, as in this project, contradicts this principle, and that British consumers' dependence on electricity generated in Morocco represents a compromise of energy sovereignty.

The expert also cited the project's high costs as a significant factor behind the UK's reconsideration. Production costs have surged dramatically in recent years, affecting the project's economic viability. Initially, the cost per kilowatt was estimated at around £70, but it has since risen to between £100 and £115, creating a substantial financial challenge.

Alia further explained that the UK government had hoped to purchase electricity at a fixed price, immune to market fluctuations. However, rising production costs made it difficult to avoid price differences linked to inflation. Additionally, the technical components essential for the project such as solar panels and wind turbines would be imported from Asian countries, limiting the project's economic benefits for the UK.

Regarding Morocco, Alia acknowledged that the project could bring positive impacts through energy exports and revenue generation. Yet, he also warned of potential drawbacks, especially related to water consumption. Producing electricity from solar and wind energy demands significant water resources, a major concern in Morocco given its existing water stress. Moreover, the costly seawater desalination needed adds to the challenges.

Ultimately, the economic feasibility of the project has sharply declined in recent years, leading the UK to end its support despite the project's progress during preliminary studies.

Following this decision, the supervising company expressed disappointment over the UK Department of Energy Security and Net Zero's refusal to finalize a contract guaranteeing a fixed electricity price, emphasizing that the project would have aligned well with the UK’s green energy strategy. The UK government justified its withdrawal by emphasizing its strategic focus on supporting local energy projects.