The Morocco-UK Green Power Project, spearheaded by Xlinks First, an investment company based in the UK, is facing a significant surge in costs, with projections soaring to 22 to 24 billion pounds ($27 to $30 billion) from the initial estimate of $24 billion. The project aims to deliver green energy from Morocco’s Southern Provinces to power homes in the UK, with an estimated strike price between $87.34 and $99.82 per megawatt hour. The CEO of Xlinks First attributed the cost increase to macroeconomic factors, including market-wide spikes in raw material and energy costs, as well as a surge in global demand for renewables. Approximately 60 percent of the cost hike is linked to global events affecting the supply chain, while the remaining 40 percent is attributed to direct macroeconomic effects, primarily driven by interest rates.
Despite these challenges, Xlinks First remains committed to the project, which aims to meet 8 percent of the UK’s electricity demand with clean energy. The final determination of the strike price will be made by the UK’s Department for Energy Security and Net Zero, while Xlinks First continues to optimize the project. The company is actively raising private capital and engaging in constructive dialogue with key stakeholders to ensure the project's success.