The ambitious Morocco-UK Power Project, managed by investment firm Xlinks First, is set to see a significant increase in costs, potentially reaching as high as $30 billion. This surge is attributed to various macroeconomic factors influencing global energy markets.
Rabat – Originally estimated at $24 billion, the monumental task of channeling sustainable energy from Morocco to the United Kingdom is now projected to cost between $27 and $30 billion. This estimate comes as Xlinks First, the project’s overseeing body, faces substantial economic headwinds impacting the broader energy sector.
As detailed by James Humfrey, CEO of Xlinks First, the project is grappling with elevated costs, largely driven by market dynamics and escalating global demand for renewable resources. “The revised strike price range of £70-80 per MWh mirrors the current economic climate and aligns with trends observed across the industry,” Humfrey explained.
According to the latest updates from Xlinks First, around 60% of the cost uptick can be traced back to global disruptions affecting supply chains, notably spikes in the prices of raw materials and general energy costs. The remaining 40% is directly related to macroeconomic fluctuations, with interest rates playing a pivotal role.
Despite these financial hurdles, Xlinks First remains dedicated to advancing the Morocco-UK Power Project. The initiative promises to supply approximately 8% of the UK’s electricity needs through clean energy. Humfrey also noted ongoing efforts to secure the necessary private capital and maintain productive discussions with significant stakeholders, including the UK’s Department for Energy Security and Net Zero.
In conclusion, while the Morocco-UK Power Project confronts rising costs, the commitment to achieving its renewable energy goals remains unwavering, signifying a bold step towards a more sustainable future.