The ambitious Sila Atlantik project, which aims to establish an undersea power cable connecting Morocco and Germany, is facing significant delays ahead of its crucial investment decision. According to a report by Reuters on Wednesday, citing four sources familiar with the negotiations, various contentious issues, including state guarantees, the direction of electricity flow, and the allocation of land, are hindering the progress of this approximately $30 billion venture.
Sources from Reuters indicate that Morocco is insisting on an intergovernmental agreement formally supported by the German government, aiming to secure a long-term state guarantee for the project. This requirement highlights Morocco's desire for a solid framework that would ensure the project's viability and sustainability.
Debates Over Electricity Flow Direction
Another critical point of contention revolves around the technical specifications of the cable. Morocco prefers that the cable be designed to facilitate electricity transport in both directions, rather than solely exporting power to Germany. A German negotiator informed the agency that while this dual-direction capability is technically feasible, it would increase costs significantly.
Furthermore, the allocation of the necessary land for the project remains uncertain. Moroccan authorities had previously promised around 150,000 hectares in the southern region of Guelmim-Oued Noun for an earlier, now-defunct project known as Xlinks. However, a similar commitment for the Sila Atlantik project is still pending, as confirmed by a senior regional representative to Reuters.
The project company, Sila Atlantik, in response to inquiries, stated that the initiative is progressing according to its technical, commercial, regulatory, and financial roadmap, but refrained from commenting on specific negotiation details.
Potential Contribution to Germany's Energy Needs
The Sila Atlantik project envisions the installation of two high-voltage direct current cables, each measuring approximately 4,800 kilometers. These cables are set to transport electricity generated from solar and wind farms in Morocco, traversing the Atlantic coastlines of Portugal, Spain, and France, as well as Belgian and Dutch maritime zones, ultimately reaching Germany. Potential connection points in Germany include Emden within the Tennet network and a southern point within the Amprion network, but the exact configurations remain to be finalized.
According to project developers, the solar and wind facilities in Morocco, boasting an installed capacity of up to 15 gigawatts, are expected to generate around 26 terawatt-hours of electricity annually. This output could meet nearly five percent of Germany's electricity consumption.
In February 2026, German State Secretary for Economic Affairs Frank Wetzel expressed Berlin's interest in the project in a letter to Morocco's Investment Minister Karim Zidane, referencing the longstanding energy partnership between Germany and Morocco that has been in place since 2012. The investment decision is anticipated to take place by the end of 2026 or early 2027, according to Reuters.
As reported by berliner-zeitung.de.
