The $ 20 billion proposal to transmit solar and wind electricity from the Sahara to Britain through the world’s longest subsea cable is a “national significance” initiative
The newly appointed Secretary of State for Energy Security and Net Zero, United Kingdom (U.K.) – Claire Coutinho, has said that the £ 20 billion plan to bring solar and wind power from the Sahara to Britain via the world’s longest sub-sea cable is a project of “national significance”.
The designation will streamline the planning process for the scheme. It will provide the certainty of a single, unified consenting process and fixed timescales. It is believed that the plan will help bring enough electricity from Morocco to supply more than 7 million homes or 8% of Britain’s power needs.
Under the plan, electricity from the Guelmim Oued Noun region of Southern Morocco would be supplied via cables running 3,800 km under the sea to the tiny North Devon village of Alverdiscott, where it would be connected to the national grid. The project would have a generation capacity of 10.5 Giga Watts (GWs), of which 7 GW would come from solar and 3.5 GW from wind.
A Statement from the Department for Energy Security and Net Zero, U.K., quoted, “Coutinho thought the project could play an important role in enabling an energy system that meets the UK’s commitment to reduce carbon emissions and the government’s objectives to create a secure, reliable and affordable energy supply for consumers.”
Her designation of the scheme as one of “national significance” means a planning application for a converter station at Alverdiscott, which would be needed to transfer power into the grid, and other infrastructure work would go straight to the Government, not Torridge District Council in Devon.
The project’s viability depends on Xlinks negotiating a contract with the Government to guarantee a fixed electricity price, known as a “contract for difference”. Such contracts are widely used to support renewable energy projects in the U.K., helping to get the offshore wind industry off the ground. Xlinks said it is seeking a contract for 25 years guaranteeing a price of £ 56-£ 64 per MWh in 2012 prices. That is equivalent to about £ 77-£ 87 per MWh in today’s prices and is lower than the current wholesale price of about £ 96 per MWh.
However, prices in Britain may well fall as more renewable power comes online. Before the recent energy crisis, prices were about £50 per MWh.
Xlinks is seeking a higher guaranteed price than that awarded to onshore wind and solar in the U.K. Government’s latest auction round for contracts, of £ 52 per MWh and £ 47 per MWh, respectively, in 2012 prices. The contract length sought is also a decade longer than the typical 15 years. Under the contracts for difference scheme, if the wholesale price falls below the price agreed between the developer and the Government, the Government pays the developer the difference, funded by a levy on consumer bills.
