Octopus Energy Group has given financial backing to a project to import solar and wind power from Morocco via the world’s longest subsea interconnectors.
Developer Xlinks is planning to build 7GW of solar farms, 3.5GW of wind farms and 5GW/20GWh of battery storage across 1,500 square kilometres of desert in the south of Morocco. The power generated would then be imported back to the UK through two 1.8GW interconnectors – each 3,800 kilometres in length – that would come ashore at Alverdiscott in Devon.
Xlinks said it expects the interconnectors to be able to supply power at their full combined capacity of 3.6GW for more than 20 hours each day on average and at a price of £48/MWh (2012 prices). The company recently confirmed it is in negotiations with the Department for Business, Energy and Industrial Strategy to secure a contract for difference at this price outside of the normal auctions.
As part of their strategic and financial partnership, Octopus and Xlinks are exploring the potential for Octopus to obtain offtake rights for Morocco-UK Power Project, enabling it to provide power to the millions of heat pumps that the supplier is planning to install in customers’ homes across Britain over the coming years.
The project is currently in the development phase, with Xlinks undertaking economic, environmental and archaeological assessments. It is scheduled to begin operating in 2027.
Greg Jackson, founder of Octopus Energy Group, who also personally invested in the project a number of years ago, said: “Going green will cut energy costs for Britain. Freeing ourselves from volatile fossil fuels was already important to help combat climate change, but it’s now clear we need to do this for affordability and security.
“Layering different sources of green energy helps answer the question ‘what do we do when the wind’s not blowing?’. This project is magic because it’s all proven technology on a huge and ambitious scale. The renewables revolution has not just begun, it’s now accelerating at an unprecedented pace for the good of people and the planet.”
Simon Morrish, chief executive of Xlinks, said: “This partnership presents an enormous opportunity to bring down energy bills significantly and help the UK achieve net zero.
“The investment demonstrates the ambition of both Xlinks and Octopus to deliver a cheaper, greener future for the UK public.”
Click here to read Utility Week’s interview with Morrish last year.