From Ahmed Al-Jashtimi

RABAT, July 22 (Reuters) - A $30 billion project aimed at supplying Germany with renewable energy from Morocco via what would be the world's longest transcontinental undersea power line is currently stalled due to disagreements over the project's structure and guarantees, four sources said.

The project, called CeLa Atlantic, aims to connect Morocco and Germany via two high-voltage submarine cables capable of supplying up to five percent of Germany’s annual electricity demand.

The project developers say the two cables will extend for about 4,800 kilometers and will be powered by solar and wind power plants in Morocco with a capacity of up to 15 gigawatts, at a total infrastructure cost of about $30 billion.

European countries are seeking to increase such ties to improve energy security and reduce dependence on fossil fuels.

Sila Atlantic, a German company founded specifically for this project, was launched after a similar proposed renewable energy interconnection project between Morocco and Britain called Xlinks collapsed a year earlier.

But two Moroccan and German sources familiar with the matter told Reuters that the project is now facing obstacles, as Moroccan authorities insist on an agreement between the two governments, formally ratified by Berlin, to guarantee long-term government support.

The sources indicated that Morocco also wants this interconnection to allow for the flow of electricity in both directions, rather than solely for export. The sources requested anonymity as they were not authorized to speak publicly on the matter.

One of the German sources said of the potential two-way connection, "Technically, it is possible, but it would be more expensive economically."

A senior official in the region told Reuters that Moroccan authorities had promised to allocate about 370,000 acres (150,000 hectares) of land in the southern Guelmim-Oued Noun region for the X-Links project, but had not yet agreed to allocate the same area for Sila Atlantic.

Sila Atlantic did not respond to specific questions about the ongoing discussions surrounding the project, but said it is "proceeding according to its own technical, commercial, regulatory and financial roadmap."

The company stated in an email response, "The project continues to evaluate the technical and organizational options that will best support its long-term development."

Morocco's energy ministry did not respond to Reuters' questions, but said via email that "regional integration is a key pillar of Morocco's energy transition strategy," and highlighted plans to strengthen electricity links with other European partners.

Morocco currently operates the only electricity interconnection line between Africa and Europe via Spain, which was essential in helping Madrid cope with a major power outage last year.

A document from Morocco’s National Office of Electricity and Drinking Water, seen by Reuters, says that another 700-megawatt interconnection line is being planned between Morocco and Spain, while a connection line between Morocco and Portugal currently under study could require investments of up to 735 million euros ($838 million).

Plans are also underway to establish a link with France.

Morocco and Portugal intend to submit the proposed power line for consideration under the European Union’s T-Med program, which aims to mobilize investments of up to 25 billion euros for cooperation in renewable energy and cross-border electricity infrastructure.