The submarine cable project linking Morocco to the United Kingdom, on the initiative of the startup Xlinks, should strengthen the Kingdom’s attractiveness to investors in renewable energy. Nevertheless, a question remains: what might Morocco obtain in return for the exploitation of its natural resources?
The Xlinks project, led by a British start-up of the same name, raises a number of questions. Transporting more than 10 GW of green electricity, produced from the wind and the sun, to the gates of the Moroccan Sahara, via an undersea electric cable, the longest in the world, linking Morocco to the United Kingdom, all the ingredients seem gathered to credit a pharaonic project that pushes the limits of the unimaginable.
The little information disclosed to date evokes an investment of around 22 billion dollars (that’s nearly 16% of Morocco’s GDP), with the ambition of supplying 8% of the electricity needs of the Great -Brittany, from 2030.
Followers of a dropper communication, the promoters of Xlinks do not leak any details on the nature of the deal (if there is a deal) with the Moroccan authorities.
On the Moroccan side, in the absence of an official communication from the government, many do not hesitate to question the realization of this project, even if the communication from Xlinks each time takes up a no less important detail, according to which Morocco has undertaken to make available to it a land reserve of 150,000 hectares to accommodate the photovoltaic solar farm, the wind turbines as well as the 5 GW battery intended for the storage of the energy produced on the site in the region of Guelmim Oued-Noun (no precise location has been indicated to date).
However, Xlinks does have a Moroccan structure, headed by Dayae Oudghiri, which acts as a relay between the London headquarters and the Moroccan authorities. According to our information, she knocked on several doors and went to meet a good number of Moroccan officials (ministers, elected officials, etc.). These meetings were not the subject of any public communication, yet supposed to reassure Moroccans, curious to know to what extent the interests of the country will be preserved. Especially following having learned, at the beginning of last July, that the famous submarine cable, 3,800 km long, which will connect Morocco to the United Kingdom, will be manufactured in a factory…. In Scotland.
Because there is a legitimate question that deserves to be asked: what does Morocco gain with the Xlinks project, apart from the pure and simple exploitation of its natural resources (solar and wind)?
“The Xlinks Project will consolidate Morocco’s role as a regional and global leader in the field of energy transition and renewable energies, placing it as a global platform for the production and export of green energy”, responds, wanting to be reassuring. , this authorized source at Xlinks, interviewed by Le360.
“The project will create nearly 10,000 jobs, including 2,000 permanent ones. A substantial part of the wind and solar components will be manufactured locally in the form of local content, thus strengthening foreign investment in Morocco on the one hand, and guaranteeing a strong involvement of Moroccan companies on the other. At this stage, several Moroccan consultants and firms have been involved in the project”, specifies this same interlocutor, who requested anonymity.
And to add: “the project, through strong coordination at the local level, will be able to create new opportunities for economic and social development for the benefit of the local population. It will also open up opportunities for collaboration in several other areas, such as training and industry”.
The project, continues this same source, will strengthen cooperation between Morocco and the United Kingdom, “which is completely in line with the current orientations as expressed by the government representatives of the two countries on several occasions”.
Faced with these words tinged with hope and optimism, seasoned observers of the renewable energy sector nevertheless wish to express reservations and ask themselves legitimate questions.
The project certainly has everything to please on paper, but several questions, around certain aspects that are very important, remain unanswered.
First of all, does Xlinks have the financial capacity to carry out this project? Unanimous response from the experts contacted by Le360: no. Has he done any projects of this magnitude before? No more. “Xlinks is a start-up”, we would like to remind you, rightly. That said, it is clear that Xlinks has still managed to recruit people with strong experience in the renewable energy sector.
Nor should we forget the fact that the electric cable will have to pass through Spanish, Portuguese and French territorial waters. “These three countries will have to give their approval. However, I do not think that France, following Brexit, would give the green light to Xlinks”, estimates this expert in renewable energies.
Even assuming, out of optimism, that Xlinks will succeed in obtaining the approval of these three countries, the operation may take several years. As proof, we should cite the example of the Morocco-Portugal interconnection project, the study of which has been dragging on since June 2016, despite the strong political will of the two countries. Even though this is a government project, unlike that of Links, which is purely private.
© : DR
Source: Ministry of Energy Transition
The question of the impact of the project on the balance of payments also deserves to be asked. Xlinks being owned by foreigners, the export of electricity will not benefit Morocco, since the dividends will be transferred in foreign currency to shareholders abroad.
As Parliament prepares to validate the new investment charter, some observers believe that it would be appropriate to impose a limit on the repatriation of dividends because these are prime natural resources. Others, for their part, suggest imposing royalties, like the model required for oil companies.
In terms of job creation and technology transfer, it is also recommended to require a high industrial integration rate for the production of blades, turbines and solar panels (knowing that the electric cable will be manufactured in Scotland) . “Wind and solar power plants provide very few post-construction jobs. We must therefore make sure to develop an industry upstream,” explains this renewable energy expert. Because beyond the announcement effects and the miraculous amounts promised, we must realistically defend that a project of this scale, if it were to see the light of day, would above all benefit Morocco and Moroccans.
