One month after the April 28 blackout that left Spain and Portugal without electricity, investigations continue to clarify the causes of the incident and those responsible. However, there are structural elements of the Spanish electricity market worth analyzing: its status as an energy island due to limited interconnection with other countries, the focus of local policies toward energy independence, and the limitations of the local electricity grid. These four factors account for a series of aspects, from the perspective of local and regional EU policy, as well as energy management, that are decisive for the development of the Spanish electricity market and the strength of the system.
From the debate on the power blackout
The blackout in the Iberian Peninsula has raised
questions about the Spanish energy sector and its management. The spotlight has
been placed on various aspects that specialized media have been analyzing over
time. The blackout involves important entities in Spain and Portugal, the
government, Red Eléctrica Española (REE), the companies, affected users, and
the European Union (EU), as the international body that oversees the actions of
member countries in support of common goals and values.
A month has passed since the power outage, Spain has
two months left to submit the results of the investigation to the EU, and the
EU is conducting its independent investigation. We are still waiting for
official information on the causes and those responsible. However, among the
hypotheses and assumptions circulating in the media, I highlight the following:
·
The Iberian Peninsula is geographically conditioned to be an
energy island.
·
Energy policy in Spain and its management
·
Electrical interconnection with the rest of the European
market.
·
Situation of the Spanish internal electricity grid.
Understanding that, regardless of the specific causes
and responsibilities of the April 28 blackout, an analysis of the Spanish
electricity market is crucial for implementing appropriate policies and
strategies that guarantee energy efficiency, security of supply, market
stability, and environmental preservation.
The Iberian Peninsula is an energy
island
The Iberian Peninsula is considered an energy island,
due to its limited connections with other territories, which reduces the
capacity for energy exchange [1]. The geographical location of the Peninsula
favors isolation, due to its "remote" location in the southwest of
the continent and the natural barrier of the Pyrenees, which connects it to
France and makes the construction of power lines difficult.
On the one hand, being an energy island has certain
advantages because it fosters energy independence, reduces the impact of
external market imbalances and minimizes the risk of disruptions from external
supply interruptions. However, when disruptions occur within the energy island,
the possibility of receiving external aid is reduced.
Additionally, the local market of an energy island has
a limited capacity to place surplus electricity generation abroad, especially
in the case of renewable energies, it wastes the competitiveness of the
external market with cheaper energy sources, which makes its internal market
more expensive and inefficient. [2]
Under this scenario, what are energy policies and
planning geared toward to avoid or overcome the constraints of being an energy
island?
Energy policies and interconnection
The Spanish market
must aim to become an efficient, affordable, secure and sustainable electricity
supply area. This begins with the definition of an
appropriate energy policy and, in practice, energy management consistent
with these objectives. The foundations for this policy were laid in the 1990s,
when the EU, seeking to develop a common internal market, set the following
objective:
“Ensure a functioning market with fair access,
high consumer protection and sufficient levels of interconnection and
generation capacity [3] This implies:
- Eliminate trade barriers.
- Adapt fiscal and pricing policies to regional norms and standards.
- Apply environmental and safety regulations.
Within the EU framework, there are TEN-E and TEN-T policies focused on encouraging the creation of trans-European energy, transport and telecommunications networks [4]. In the case of electricity networks, in 2002, the EU proposed that member countries achieve interconnections of at least 10% of installed generation capacity by 2020 and, then, in 2014, increased the target to 15% by 2030. [5]
Table 1 presents the
official figures for Spain's total installed capacity from 2020 to 2024 [6] in
relation to the EU targets (Table 1). In this regard, the first thing to note
is the 21 GW increase in generation capacity in 4 years. Secondly, the figure
for 2030, Spain's Integrated Energy and Climate Plan (PNIEC) [7], set a total
generation capacity target of 214 GW and, therefore, the interconnection target
would be 32 GW that year.
Table 1. Total installed capacity and interconnection goal
of Spain (2020-2030)
|
|
2020 |
2021 |
2022 |
2023 |
2024 |
2030 (PNIEC) |
|
Total capacity (GW) |
111 |
114 |
120 |
127 |
132 |
214 |
|
2020 Target 10%
(GW) |
11 |
- |
- |
- |
- |
- |
|
2030 Target 15%
(GW) |
- |
- |
- |
- |
- |
32 |
Source:
REE and Mintur
Spain did not achieve
the 2020 target of 11 GW, and achieving the 32 GW target by 2030 represents a
major challenge. Currently, the country's total interconnection level is around
7.5 GW (Table 2) [7], which represents barely 6% of the country's total capacity.
Expanding interconnections with the European continent, in principle, implies
expanding connections with France, a country with which it only holds 2%
interconnection with 2,800 MW.
Table 2. Spain's interconnection capacity with other
countries (MW)
|
|
Export (MW) |
Import (MW) |
|
France |
2,800 |
2,800 |
|
Portugal |
4.100 |
3,600 |
|
Morocco |
600 |
900 |
Source: Mintur
The
low level of interconnection has several interpretations . First, local energy policy and/or its actions seem far removed from
electricity interconnection policies, favoring the development of the regional
energy market established by the EU.
The second, as an
implication of the previous, is associated with the political will driving the
changes. Since the first 10% interconnection target was established, more than
two decades and several government periods have passed, and Spain barely has 2%
interconnection with France.
The third [8], the prioritization of energy independence as a policy
adopted to address the condition of energy island, to the extent that the total
capacity of own generation increases, while the expansion of regional
interconnection has stagnated.
Spain's energy policy
has opted for energy
independence, through the expansion of generation with renewable energy, which
represents 64% of the total generation capacity (Table 3) [6], which allows the
country to minimize its exposure to external market volatility.
Table 3. Installed generation capacity by type of source in
Spain 2024
|
Energy source |
Total capacity GW |
|
Renewables |
85 |
|
Non-Renewable |
44 |
|
Storage |
3.3 |
|
Total |
132 |
Source: REE
Are there any plans to expand Spain's electrical interconnection with Europe?
- The Gatika (Spain) - Cubnezais (France) interconnection. This will be the first submarine interconnection between the two countries, with a length of 400 km and will increase the exchange capacity from 2,800 MW to 5,000 MW. It is expected to come online in 2027. The grid is owned 50% by REE of Spain and 50% by RTE of France. The project suffered delays due to environmental, technical and cost issues. However, the laying of the foundation stone of the Cubnezais converter station took place on 16 May [9]
- Two interconnections:
Navarre (Spain)—Landes (France) and Aragon (Spain) —Pyrénées
-Atlantiques (France) to increase the exchange capacity to 8,000 MW. The
Aragon-Pyrénées-Atlantiques project was approved by the European Commission a
decade ago. Both projects are currently in the definition phase. [10]
- Saint Julià de Ramis or Vandellós (Spain) – Spezia (Italy) interconnection . Project proposed by the German company Europa Link Development to connect both countries with a 660-kilometer submarine cable with an exchange capacity of 2,000 MW. The project is currently being studied by ENTSO-E, the European association of electricity transmission operators [11].
The first two
projects fall within the EU framework as Projects of Common Interest (PCI), and
REE reserves the right to operate the lines on the Spanish side. The third
project, in particular, would mark a milestone at the local level by breaking
with REE's monopoly, as it is a private company in charge of the project. While
this is provided for within European regulations, it is an element that must be
subject to evaluation and approval by local authorities.
In any case, even if
all the aforementioned projects were to come online, the maximum
interconnection capacity would be around 10 GW, leaving a gap to reach the EU15
target of 32 GW.
What
is the situation of the internal electrical grid in Spain?
The development of
domestic electricity grids has been out of step with the expansion of
generation, resulting in inefficiencies in grid management. It is estimated
that 18,000 kilometers of grids are required, while the National Electric Power
Plan (PNIEC) for 2030 falls short of this figure. In recent years, grid
expansion has been aimed at connecting new renewable energy generation centers
to the national distribution grid [12].
The increasing energy
flow exceeds the capacity of the local power grid, so the network has been
experiencing energy spills [13] . The disparity in the
geographical distribution between production centers and consumption centers
generates bottlenecks at specific points in the network where the electric flow
lacks sufficient lines to connect with consumers and spills are encouraged.
The local grid
requires the expansion of downstream lines to bring the electricity flow to
market. There is also unmet demand waiting to be connected to the grid.
REE reports that there are approximately 100 GW of grid access requests,
distributed as follows: 41% for generation, 40% for demand, and 19% for
storage. [12]
One of the limiting
factors for the sector is the investment cap on transmission and
distribution networks, which is below 1% of GDP, an expected increase is
currently under review at the government's request. Another determining factor
is the level of profitability of investment in electricity networks,
currently set by the National Commission on Markets and Competition (CNMC), at
5.6%, a figure that companies also expect to be increased [12].
Points of attention on energy policy and management
- Spain is a country committed to the energy transition and the development of renewable energy for clean electricity generation is in line with EU policies.
- The development of external networks is part of a supranational EU policy that must be prioritized in local energy policy and management.
- Spanish energy and foreign policy can jointly undertake effective strategies to promote international cooperation for the interconnection of electricity grids, with the support of Portugal and under the auspices of the EU.
- Energy planning and management require a comprehensive approach to the value chain: generation, transmission, distribution and marketing. The development of one link to the detriment of or omission of another leads to inefficiencies.
- Self-sufficiency in electricity generation must be complemented by the international markets to ensure security of supply.The development of internal and external electrical networks strengthens the grid by providing operational flexibility and eliminating bottlenecks, making energy management more efficient.
Final
considerations
The initial
motivation for writing this series of three articles on the April blackout in
Spain was to conduct a descriptive analysis that, despite the intrinsic
complexities of an electrical system, would allow for an understanding of the
structure and functioning of the Spanish electrical system, thereby putting the
event of the power outage into context. Through this research, it was even
possible to gain insight into the Portuguese electricity market.
Now, based on the
information presented, the analysis invites reflection on structural aspects of
the Spanish electricity sector, which go beyond the power failure and are
fundamental for both policymakers and companies that participate or wish to
participate in the industry.
Regarding the power
outage, its causes, and those responsible, it is expected that the
investigations will be fully realized, and the competent authorities will take
appropriate action. In this regard, it should be noted that the uncertainty
surrounding what happened and how the investigation is being handled also has
an impact on the expectations and decision-making of companies and entities in
the sector.
By Iris Mujica
Sources:
[1] https://elperiodicodelaenergia.com/por-que-la-peninsula-iberica-es-una-isla-energetica/
[2] https://ihlconsulting.es/elementor-3209/
[3] https://www.europarl.europa.eu/factsheets/en/sheet/45/internal-energy-market
[4] https://www.europarl.europa.eu/factsheets/es/sheet/135/las-redes-transeuropeas-orientaciones
[5] https://www.ieee.es/Galerias/fichero/docs_opinion/2022/DIEEEO78_2022_DELFUE_Isla.pdf
[6] https://www.sistemaelectrico-ree.es/informe-del-sistema-electrico/potencia-instalada
[8] https://eleiaenergia.com/por-que-espana-ha-bajado-la-dependencia-energetica-del-exterior/
[12] https://www.elindependiente.com/economia/2025/05/12/redes-sector-electrico-2030/
Comments
Post a Comment