It was meant to be the showcase project of a new energy partnership between Morocco and the United Kingdom, a 4,000-kilometer bridge linking the winds and sun of southern Morocco to British homes. But the dream of interconnection has faltered: on June 26, London officially announced its withdrawal from the Xlinks project, turning its back on what had been presented as one of the most ambitious underwater power cables ever designed.
A decision that raises questions, in Morocco as well as in the United Kingdom, as it reshuffles the deck of a partnership praised since 2021. And it brings up a fundamental question: can the Kingdom still aspire to become a strategic player in the export of green electricity?
The British withdrawal from the Xlinks project raises questions about Morocco’s energy export strategy. While the Kingdom’s potential remains intact, its realization will depend on its ability to better oversee future partnerships, in a context of rapidly changing global demand… pic.twitter.com/gzCmYPfeIr
— TelQuel (@TelQuelOfficiel) July 3, 2025
London slams the door
“Xlinks project does not clearly align with our mission to develop locally produced energy and involves a high level of risk”
In a brief but carefully worded statement, the British government justified its withdrawal: “The project does not clearly align with our mission to develop locally produced energy and involves a high level of risk,” said Michael Shanks, Secretary of State for Energy. The contract for difference (CfD), this public price guarantee mechanism for electricity over 25 years, will therefore not be granted to Xlinks.
A decision all the more unexpected given that the project had been classified as “nationally significant infrastructure” in the United Kingdom since 2023. The British company, led by Sir Dave Lewis, planned to deliver up to 8% of British electricity demand by 2030, thanks to a mix of 7 GW of solar, 4.5 GW of wind, and 5 GW of batteries, produced in southern Morocco.
For Xlinks, the blow is severe. “We are surprised and bitterly disappointed,” reacted Dave Lewis, denouncing a missed opportunity to reduce electricity prices, decrease dependence on gas, and inject 20 billion pounds into the British economy. In Morocco, the infrastructure was ready: secured land, completed impact studies, and a financing round closed with TotalEnergies, Octopus Energy, and TAQA. All that was missing was the green light from Westminster.
Radio silence in Rabat
While London has spoken publicly, the silence from the Moroccan side is deafening. To date, no official statement from the Ministry of Energy Transition has been released. Only Deputy Fatima Tamni, elected from the Federation of the Democratic Left (FGD), has attempted to break the opacity.
In a written question addressed to Minister Leila Benali, she expresses her concern about the consequences of this British withdrawal on the country’s energy strategy. She asks: what will happen to the investments made? What were the contractual conditions planned with Xlinks? And above all, what is Morocco’s current position on exporting its green electricity?
“Distribution, storage, price accessibility: the internal challenges remain fully intact,” the parliamentarian recalls, calling for transparency and a clear alternative strategy. In other words: should Morocco continue to bet on exports when internal needs are not yet fully covered?
An uncertain future
The Guelmim-Oued Noun region, where the project was to be established, had expressed its full support for the project. Its president, Mbarka Bouaida, declared in 2022 that it would be “the largest project in the region.” She also revealed the localities involved: Al Mahbès, in the province of Assa-Zag, as well as Lamssid and Chbika, in the province of Tan-Tan.
But since then, no official updates have been given on the progress. When asked by TelQuel whether the British withdrawal called into question the region’s commitment, the latter has, to date, not responded to our requests. This institutional silence, coupled with the absence of government communication, casts great uncertainty over the future of the project in Morocco.
According to our information, the promoters of Xlinks do not intend to abandon their project just yet. The company is now exploring other avenues, notably toward private clients with high energy intensity. They are specifically targeting actors in the artificial intelligence, cloud computing, and data center sectors, known for their massive electricity consumption.
This shift toward private operators, although it partially preserves the project’s future, profoundly reconfigures its meaning. Xlinks, initially designed as a pillar of energy cooperation between two states, becomes a supplier for large technology companies, following a more commercial than strategic logic.
Nonetheless, Morocco remains, in London’s eyes, an essential partner despite the project’s abandonment. In its official statement, London expressed its “gratitude to the Kingdom of Morocco for its willingness to support this innovative project,” while reaffirming its intention to “strengthen the bilateral strategic partnership in the areas of trade, green growth, and energy transition.” In other words, the British withdrawal is primarily aimed at refocusing its strategy on lower-risk domestic projects, without calling into question the relationship with Morocco.
A model to rethink
Beyond the case of Xlinks alone, this British withdrawal calls into question Morocco’s green electricity export strategy as a whole. For several years, the Kingdom has expressed its ambition to become a regional hub for renewable energy, exporting its solar or wind surplus to Europe.
Besides Xlinks, another megaproject led by the Australian group Fortescue plans to produce up to 100 GW of green energy in Morocco to deliver to Europe via underwater cables. Again, the ambitions are high, but the terms of the collaboration remain unclear.
Unlike Xlinks, Fortescue from the start built its business model without relying on public support. The company did not request purchase guarantees from any state, nor a contract for difference: it is counting on fixed-price private purchase commitments, which makes its project less exposed to political risks or government reversals.
A preventive approach aimed at circumventing institutional uncertainty — whereas Xlinks, betting on a long-term contract with the United Kingdom, found itself weakened by London’s unilateral decision.
Exporting, yes… but under what conditions?
“We have the land, the sun, the stability. These are valuable assets, but they must be turned into leverage”
The British withdrawal does not erase Morocco’s strengths, nor its ambition to become a major player in green electricity at the regional level. Abundant natural resources, proximity to the European market, institutional stability: the fundamentals are there. The Kingdom still needs to turn this comparative advantage into a strategic advantage.
All the more so as global demand for decarbonized energy continues to grow, driven by climate goals, Europe’s green reindustrialization, but also by the rise of new technologies, whose operation requires colossal volumes of electricity. Morocco could thus position itself as a key link in the global energy transition, provided it better defines its interests.
“We have the land, the sun, the stability. These are valuable assets, but they must be turned into leverage,” emphasizes Amin Bennouna, expert in energy and energy project development. For him, the challenge is not to give up on exporting, but to better frame it: “Morocco must ensure, from the negotiation phase, that the terms are clear. This could involve the entry of Moroccan public actors into project equity or well-defined value-sharing mechanisms.”
In the future, the success of energy partnerships will therefore depend on their architecture: shared governance, local benefits, commitments to technology content and jobs. Essential conditions for Morocco to be not just a host territory, but a fully engaged player in the green energy value chain.
Written in French by Safae Hadri, edited in English by Eric Nielson
