Ed Miliband rejects £24bn plan to bring power from Morocco to UK

**Ed Miliband Rejects £24 Billion UK-Morocco Energy Link in Major Policy Shift**

Energy Secretary Ed Miliband has rejected a £24 billion proposal to import renewable electricity from Morocco to the United Kingdom via a record-breaking subsea cable. The ambitious Morocco-UK Power Project, led by British energy firm Xlinks, had aimed to provide up to 8% of Britain’s electricity needs by transporting solar and wind power from the Sahara Desert to the Devon coast.

Announced in 2022, the project envisioned a sprawling renewable energy complex in Morocco consisting of 11.5 gigawatts (GW) of solar and wind power over an area of 1,500 square kilometers. This clean energy would be transmitted through a 3,800 km high-voltage direct current (HVDC) cable—the world’s longest—running undersea from North Africa to the UK. The idea captured headlines as a futuristic solution to Britain’s energy needs.

But this week, Miliband and the Department for Energy Security and Net Zero (DESNZ) determined that the project did not meet the government’s requirements for investment or public subsidy. Rising costs, geopolitical risks, a lack of benefits for the UK supply chain, and the existence of more viable domestic alternatives were the primary impediments. The financial profile of the Xlinks project had become increasingly controversial. While originally estimated at around £16 billion, the final cost approached £24 billion. Xlinks sought a Contract for Difference (CfD) with the government, which would have locked in a fixed power price for 25 years—reportedly in the range of £70 to £80 per megawatt-hour, comparable to that offered to nuclear projects like Hinkley Point C. DESNZ was concerned that taxpayers would bear significant financial risk without clear strategic or economic returns.

Another critical concern was energy security. The power line's unprecedented distance and vulnerability to geopolitical events in North Africa and the Mediterranean were cited by officials as potential threats. Whitehall raised concerns regarding the UK's reliance on a single foreign connection for the majority of its electricity because of the country's growing emphasis on domestic energy resilience. Furthermore, the project’s minimal use of British manufacturing weakened its appeal. Although Xlinks pledged to create a subsea cable factory in Hunterston, Scotland, much of the project’s equipment—especially the cables—was expected to be sourced from overseas, likely Asia. Ministers judged that the project would deliver insufficient domestic economic benefit compared to UK-based renewable schemes.

In announcing the decision, Miliband stated: “Our priority is to build a cleaner, cheaper, and more secure energy future based on homegrown renewables. While innovative, this particular project does not provide the best value for consumers or the UK energy system at this time.”

The rejection has been met with disappointment from Xlinks and its investors, which include Octopus Energy and TotalEnergies. The decision was described as "hugely surprising and deeply disappointing" by Sir Dave Lewis, executive chairman of Xlinks and former CEO of Tesco. Lewis argued that the project had already secured development funding worth more than £100 million and was on track to begin construction before 2030. Lewis indicated that instead of relying on government support, Xlinks may now seek private-sector power purchase agreements (PPAs). He also hinted at possible partnerships with European buyers, noting that countries like Germany have shown interest in cross-border renewable energy links. “If not the UK, then others will step up,” Lewis said.

Not the only green energy project being developed across continents is the Morocco-UK Power Project. Around the Mediterranean, projects like Tunisia-Italy and Egypt-Greece connections are being looked into. These could redefine how Europe sources renewable electricity in the coming decades, especially as the continent seeks to phase out fossil fuels.

For now, however, Miliband’s decision signals a strong commitment to UK-based renewables. By 2030, Labour has promised to quadruple offshore wind, triple solar power, and double onshore wind. The government also aims to create a publicly owned company, Great British Energy, to invest in domestic green projects.

While the Xlinks vision may not be dead, its future remains uncertain. As the UK races toward net-zero emissions, the government's rejection highlights the delicate balance between innovation, energy security, and economic value.