“Economic pressures” raise the cost of the electrical interconnection project between London and Rabat

Morocco – X-Links, the company supervising the electrical interconnection project between Morocco and Britain, reported that the expected cost of this project has risen to between 27 and 30 billion dollars due to economic pressures.

The company said in a statement, “The current cost of implementing this project, as of this month, will reach between 27 and 30 billion dollars, compared to the previous cost, which was estimated at regarding 25 billion dollars.”

“X-Links” attributed this increase to “the major economic pressures witnessed in the costs of energy projects,” noting that “regarding 60% of this increase was driven by pressures experienced by supply chains, as well as the impact of global events, including increases in raw material costs.” As well as the global increase in demand for renewable energy sources, while the other 40% is related to direct economic pressures, especially rising interest rates.”

James Humphrey, CEO of X-Links, said that these new price updates are generally in line with what we are seeing in the market, stressing that his company remains committed to delivering the energy project between Morocco and the United Kingdom in the next decade.

The aforementioned project is expected to supply more than 7 million homes in the United Kingdom with electricity, thus meeting regarding 8% of this country’s electrical needs by 2030 via high-voltage marine cables, with a length of regarding 4,000 kilometers, passing through France, Spain, and Portugal.

Source: Hespress