Why Grand Energy Plans Fail: Lessons From a £24B Collapse

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Jun 29, 2025

A £24B plan to power UK homes with Sahara solar collapsed. What went wrong? Dive into the risks and lessons that could reshape our energy future...

Financial market analysis from 29/06/2025. Market conditions may have changed since publication.

Have you ever pinned your hopes on a bold idea, only to watch it unravel under the weight of reality? That’s exactly what happened when the UK quietly shelved a £24 billion plan to pipe solar and wind energy from Morocco’s deserts to British homes. It was a dream sold as the future of green energy—a 3,800-mile subsea cable delivering clean power to millions. Yet, last week, it became another cautionary tale of ambition outpacing practicality. Let’s unpack why this mega-project fizzled and what it tells us about the pursuit of net zero.

The Rise and Fall of a Desert Dream

The idea was intoxicating: harness the Sahara’s endless sun and wind, channel it through the world’s longest underwater cable, and power 7 million UK homes. Launched with fanfare in 2022, the project promised to deliver 3.6 gigawatts of renewable energy, slashing reliance on gas and cutting wholesale electricity prices by 9%. Investors, from Middle Eastern energy giants to European conglomerates, lined up. It was billed as a win for the planet and the pocketbook. So, what went wrong?

The Price of Ambition

Let’s start with the numbers. The project’s cost, initially pegged at £16 billion, spiraled to £24 billion by the time talks collapsed. That’s enough to make anyone blink twice. For context, that’s roughly the cost of a new nuclear power plant, but with far more variables. The price for consumers? A subsidized rate of £70-80 per megawatt-hour, rivaling the infamous Hinkley Point C nuclear deal. Suddenly, the “affordable clean energy” pitch started sounding like a hard sell.

Grandiose plans often hide grim realities behind shiny promises.

– Energy policy analyst

I’ve always found that big ideas tend to underestimate the small details. Here, the details were anything but small. The project required a 1,500 square-mile solar-wind-battery complex in Morocco, plus a cable threading through disputed waters, remote islands, and fierce ocean currents. Each step added layers of financial risk and logistical headaches.

Security Concerns: A Fragile Lifeline

Imagine relying on a single cable stretching halfway across the globe to keep your lights on. Sounds risky, right? UK officials thought so too. They flagged the project as a “high-risk” venture, citing potential vulnerabilities to sabotage, technical failures, or even geopolitical spats. A single storm, a wayward anchor, or a hostile actor could sever the connection, plunging millions into darkness.

  • Geopolitical risks: Dependence on foreign infrastructure raises questions of control.
  • Physical vulnerabilities: A 3,800-mile cable is a target for accidents or attacks.
  • Operational challenges: Dust storms and maintenance in remote deserts add complexity.

It’s not hard to see why the government got cold feet. In a world where energy security is paramount, betting on a fragile lifeline through multiple jurisdictions feels like a gamble. Perhaps the most sobering realization was that domestic alternatives—wind farms in Yorkshire or storage solutions in the Midlands—offered less risk and more control.


The Mirage of Techno-Utopianism

There’s something seductive about grand visions. The idea of a global energy grid, knitting nations together with clean power, feels like a page from a sci-fi novel. But here’s the rub: techno-utopianism often ignores the messy realities of politics and budgets. This project wasn’t just about engineering; it was about trust—trust in foreign partners, stable supply chains, and predictable costs. When that trust wavered, the dream crumbled.

In my experience, the most compelling ideas often trip over the simplest hurdles. Take the battery storage needed to smooth out solar power fluctuations. Dust storms in the Sahara could slash output, requiring massive, costly batteries. Add in the reliance on Asian cable manufacturers and Moroccan political goodwill, and you’ve got a house of cards waiting for a breeze.

Why Domestic Solutions Won Out

The UK’s decision to prioritize “stronger alternative options” closer to home speaks volumes. Why bet on a distant desert when you can invest in local wind, solar, or even nuclear? Domestic projects offer shorter supply chains, fewer geopolitical risks, and a chance to boost local economies. It’s not just about energy independence; it’s about accountability to taxpayers and voters.

Project TypeRisk LevelControl
Overseas Mega-ProjectHighLow
Domestic RenewableMediumHigh
Nuclear PowerMedium-HighHigh

This shift isn’t just pragmatic—it’s a wake-up call. The allure of exotic imports can’t outweigh the reliability of homegrown solutions. As one energy expert put it, “Why outsource your energy future when you can build it in your backyard?”

Lessons for the Future

The collapse of this project isn’t the end of renewable energy ambitions, but it’s a reality check. Here are the key takeaways for anyone dreaming of the next big green idea:

  1. Keep it local: Domestic projects reduce risks and boost accountability.
  2. Mind the costs: Ballooning budgets erode public trust.
  3. Prioritize security: Energy infrastructure must be resilient to disruptions.
  4. Simplify the vision: Grand plans often falter on complex logistics.

Perhaps the most interesting aspect is how this failure exposes the limits of globalized energy dreams. The rhetoric of “interconnected grids” sounds inspiring, but when the bill arrives, nations retreat to their own borders. It’s a reminder that energy policy is as much about pragmatism as it is about idealism.


What’s Next for Green Energy?

Don’t expect the dreamers to give up. The project’s backers are already talking about pivoting to new ventures—perhaps Canadian hydropower or offshore wind. But the lesson here is clear: sustainable energy must balance ambition with realism. The UK’s pivot to domestic solutions could spark a renaissance in local innovation, from advanced battery storage to modular nuclear reactors.

The future of energy isn’t in far-off deserts—it’s in our own backyards.

– Renewable energy consultant

I can’t help but feel a twinge of schadenfreude watching this mega-project deflate. Not because I doubt the need for climate action, but because it reminds us that even the flashiest plans must answer to budgets, voters, and common sense. The next time someone pitches a global energy utopia, I’ll be asking one simple question: “Who’s footing the bill?”

As we move forward, the focus should be on resilient, affordable, and local solutions. The Sahara sun might shine brightly, but it’s the turbines spinning in Yorkshire and the batteries humming in the Midlands that will light the way to a sustainable future. Let’s hope the next big idea keeps its feet firmly on the ground.

The worst day of a man's life is when he sits down and begins thinking about how he can get something for nothing.
— Thomas Jefferson
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