The “Sila Atlantik” project for an undersea power cable between Morocco and Germany is stalling before the investment decision. According to a Reuters report on Wednesday, citing four individuals familiar with the negotiations, disputes over state guarantees, the direction of electricity flow, and land provision are hindering the progress of the approximately $30 billion project.
Sources from Reuters state that the North African country insists on an intergovernmental agreement that is formally supported by the German government. Rabat wants to secure long-term state backing through this agreement.
Dispute Over Power Flow Direction
Another point of contention, according to Reuters, is the technical design. Morocco wants the cable to transport electricity in both directions instead of just facilitating exports to Germany. “Technically, this is feasible, but it would be more costly,” said one of the German negotiators to the agency.
The allocation of the required land remains unresolved. Moroccan authorities had previously promised around 150,000 hectares in the southern region of Guelmim-Oued Noun for a prior, now-failed project named Xlinks. A similar commitment for Sila Atlantik is still pending, said a senior regional representative to Reuters.
The project company “Sila Atlantik” stated upon request that the project is progressing according to its technical, commercial, regulatory, and financial plan. The company did not comment on specific negotiation details.
Up to Five Percent of German Electricity Demand
“Sila Atlantik” envisions two high-voltage direct current cables spanning approximately 4,800 kilometers. The lines are set to run from solar and wind farms in Morocco along the Atlantic coasts of Portugal, Spain, and France, as well as through Belgian and Dutch maritime areas to Germany. Possible connection points in Germany include Emden in the Tennet grid and another point further south in the Amprion grid. The exact configuration is still open.
According to project developers, solar and wind facilities in Morocco with a combined installed capacity of up to 15 gigawatts are expected to deliver around 26 terawatt-hours annually – equivalent to nearly five percent of German electricity consumption.
German State Secretary for Economic Affairs Frank Wetzel already expressed Berlin’s interest in the project in a letter to Morocco’s Investment Minister Karim Zidane in February 2026, referencing the bilateral energy partnership that has existed since 2012. According to Reuters, the investment decision is expected by the end of 2026 or early 2027.
