Governance differences stall Morocco-Germany $30 billion power cable

A planned $30 billion renewable electricity link between Morocco and Germany has hit a roadblock, as Rabat and Berlin remain divided over the project's governance and long-term guarantees, according to Reuters.

The Sila Atlantik project aims to connect the two countries through two high-voltage subsea cables stretching around 4,800 kilometers, making it the world's longest intercontinental undersea power connection. Powered by up to 15 gigawatts of solar and wind energy produced in Morocco, the link could eventually cover up to 5% of Germany's annual electricity demand.

According to four sources familiar with the discussions, Morocco wants Germany to formally commit to the project through an intergovernmental agreement, ensuring long-term state backing. Rabat is also seeking a two-way electricity connection, allowing power to flow not only from Morocco to Germany but also in the opposite direction if needed. One German source told Reuters that such a system is technically feasible but would increase costs.

The discussions have also delayed decisions on land allocation. While Morocco had previously earmarked around 150,000 hectares in the Guelmim-Oued Noun region for the now-abandoned Xlinks Morocco-UK project, the same allocation has yet to be approved for Sila Atlantik.

Without commenting on the negotiations, Sila Atlantik said the project remains on track with its technical, commercial, regulatory and financial roadmap. Morocco's Energy Ministry did not address the reported disagreements but reiterated that expanding electricity interconnections with Europe remains a key pillar of the kingdom's energy transition strategy.

Morocco already operates Africa's only electricity interconnection with Europe through Spain, with additional links planned with Spain and France and a Morocco-Portugal project also under study.