The United Kingdom has withdrawn its support for a major renewable energy project that aimed to supply power from Morocco to Britain through underwater cables, citing concerns over security and delivery risks.

The UK’s Energy Security Department said on Thursday it would no longer back the $33 billion Morocco-UK Power Project, led by British company Xlinks, due to the "high level of inherent risk" associated with the initiative.

“There are stronger alternative options that we should focus our attention on,” said British Energy Minister Michael Schanks. He added the decision was made to protect taxpayers and consumers from potential cost and delivery failures.

The project, announced in 2021, aimed to deliver wind and solar power from Morocco to the UK via nearly 4,000 kilometres of subsea cables — enough to supply 8% of Britain’s current electricity needs, or roughly 7 million homes. If completed, it would become the world’s largest interconnector of its kind.

Despite the UK’s withdrawal, Xlinks said it intends to continue. “We are hugely surprised and bitterly disappointed,” said Xlinks Chair Dave Lewis. “We believe this project would deliver cheaper, faster electricity than other options — including nuclear.”

Xlinks had already secured financial backing from investors including France’s TotalEnergies and the Africa Finance Corporation. The company was also pursuing a fixed-price agreement for electricity generation.

The move highlights growing caution in Britain around large-scale overseas infrastructure projects, even as European countries increasingly look to North Africa as a source of affordable, clean energy. Similar transmission projects are under development to link solar and wind farms in Tunisia and Egypt with Italy and Greece.

Moroccan authorities have not commented publicly on the UK’s decision.

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