Morocco-UK power cable project faces cost hike to £24 billion

The estimated cost of a massive power cable project connecting Morocco and the UK has surged significantly, according to a report by British magazine New Civil Engineer on Wednesday. Xlinks, the developer behind the project, now estimates it could cost up to £24 billion, a 10-20% increase from the initial £20 billion estimate.

The project consists of building four 3,800-kilometer high-voltage direct current (HVDC) cables. These cables will run from the UK's south coast, passing undersea through France, Spain, and Portugal, before connecting to a planned solar and wind energy project in Morocco. Upon completion, the subsea power cable is expected to provide 8% of the UK's electricity needs.

Xlinks attributes the cost increase to global economic factors, citing «significant upward pressure on the cost of all energy projects». The company specifically mentions an update by the Department for Energy Security and Net Zero (DESNZ) announcing rising maximum prices in the Contracts for Difference (CfD) renewable energy auction as a contributing factor.

«Our revised guidance on the Morocco-UK Power Project strike price reflects the broader market trends caused by macroeconomic factors», stated James Humfrey, Xlinks First Chief Executive. «Xlinks remains committed to delivering the project within the next decade, providing the UK with 8% of its electricity demand through affordable, reliable, clean power. We are actively raising the necessary private capital and maintaining constructive dialogue with key stakeholders, including the UK's Department for Energy Security and Net Zero».