2024-04-25 21:09:00
If the technical and financial hurdles remain enormous, the Xlinks project may well chart the way to a new era of energy cooperation between Africa and Europe, a catalyst for sustainable development and a long-awaited low-carbon economy.
The Xlinks project, a real energy link between Morocco and the UK, reaches another major milestone with the $14.1 million investment from the Africa Finance Corporation (AFC). This leading African multilateral financial institution thus joins the trio of investors that have already committed, namely TAQA, Total Energies and Octopus Energy.
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“The support from AFC marks an important milestone for the project, confirming Morocco’s role as a continental leader in renewable energy,” emphasizes Xlinks First Ltd in a joint press release. Samaila Zubairu, President and CEO of AFC, agrees: “Africa, with its enormous potential for renewable energy, is at the forefront of global ambitions for net zero emissions. The Xlinks project illustrates this central role.”
Ambitious technical and financial challenge
Once complete, the Xlinks project will provide 3.6GW of wind and solar power, combined with battery storage, equivalent to 8% of the UK’s current electricity needs. To achieve this, huge solar and wind farms will be built in the Moroccan desert, while a 4,000km network of high-voltage undersea cables will bring this green power to British shores.
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“By harnessing the Sahara’s abundant wind and solar energy and channeling it directly into one of Europe’s largest energy markets, this project increases the growth of the Moroccan economy through significant export earnings”, analyzes Samaila Zubairu.
With a total cost estimated at more than $20 billion, Xlinks represents one of the largest investments ever made in Africa in renewable energy. A significant financial and technical challenge, but important according to James Humfrey, CEO of Xlinks First.
Catalyst for the energy transition
Beyond commercial prospects, Xlinks embodies a decisive step in the global energy transition. “This project not only stimulates economic growth, but also catalyzes the development of local clean energy industries,” says the AFC chief.
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The creation of a true integrated industrial ecosystem around renewable energy is indeed expected, from the production of equipment to revaluation, including storage and transport. A major development opportunity for Morocco, which will consolidate its energy expertise on a regional and continental scale.
“As this project progresses, it will benefit Morocco, Africa, but will also significantly contribute to the reduction of greenhouse gas emissions, with most of the investments expected to drive this change occurring in the global south,” predicts Samaila Zubairu .
An energy partnership without parallel
Classified as “nationally important” by the UK, the Xlinks project reflects the new geopolitical and economic realities at work. Moroccan energy expertise combined with vast African natural resources makes it possible to envisage unprecedented energy partnerships with European countries, which are facing significant transitions.
The investment by AFC, a leading pan-African financial institution, confirms this central role of Africa in the global energy transition. A strong signal in a context where the financing of large green projects constitutes one of the major challenges to be met.
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