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Yahoo
13-06-2025
- Politics
- Yahoo
The Iberian Blackout Put EU Energy Security in the Spotlight
In late April, Spain, Portugal and parts of southern France experienced the most widespread blackout in European history. As their governments and the European Union scramble to identify the root cause of the grid failure, the incident raises serious questions about the efficacy of the EU's pooled energy policy and the security of its electricity network. Shortly after noon on April 28, electricity production across the power grids of Spain and Portugal dropped by more than half in a matter of seconds, provoking a power outage that brought industries, businesses and communities to a standstill across the Iberian peninsula. The blackout persisted throughout the day, as authorities scrambled to reboot the power grid. In some parts of the peninsula it was almost 24 hours before life returned to normal. Multiple inquiries have since been set up to investigate the incident, most notably by an expert panel from ENTSO-E, the European umbrella group for Transmission System Operators, or TSOs, across the bloc. While physical sabotage and cyberattacks have been ruled out, it may be many months before the ENTSO-E panel as well as Spanish and Portuguese experts arrive at a definitive explanation for the incident. In the meantime, the political fallout is becoming increasingly clear, with potentially far-reaching implications for EU energy market integration, power-grid resilience, the role of renewable energies and culture war politics across the bloc. Russia's all-out invasion of Ukraine in 2022 effectively ended the EU's energy dependency on Russia and sent energy prices soaring across the bloc. But in doing so, it also intensified policy conflict around the EU's push for further integrating member states' energy markets. Many policy analysts and politicians have underlined the resilience that integrated European electricity markets can provide in the wake of losing cheap Russian gas supplies, while decrying price caps and subsidies at the member-state level, which they argue undermine a unified EU-wide approach. Others, however, argue that national governments must retain the legislative freedom to reduce energy prices to hard-pressed consumers and businesses to protect living standards and domestic economies. To get more in-depth news and expert analysis on global affairs from WPR, sign up for our free Daily Review newsletter. The Iberian blackout has now added another complex dimension to this ongoing debate. Some experts tout enhanced integration as the solution to future outages, with interconnected grids facilitating backup power to affected regions, while others argue that increased integration could actually exacerbate rather than ameliorate blackouts. As Jianzhong Wu, a professor at the University of Cardiff, points out, increased interconnectedness means that 'serious faults, like a large loss of synchronisation, can spread across multiple regions or even countries if not rapidly contained.' The one thing that most energy experts can agree on, however, is the extent to which the blackout has exposed the shortcomings of a power grid designed for the age of fossil fuels, but which must now incorporate ever larger and more diverse energy sources. Even staunch advocates of renewable energy accept that the inherent variability in weather-based renewable energy sources complicates grid operators' ability to 'efficiently manage power flows and avoid grid imbalances.' As a result, the commendable and necessary drive to complete the energy transition has to be matched by equally urgent investment in the upgrading of European power grids as fossil fuels give way to renewable energy. And the scale of the necessary investment is truly staggering. According to a 2023 International Energy Agency report, the world must add or replace 50 million miles of power grids by 2040 in order to meet climate targets and facilitate the integration of renewables into the system. That's the equivalent of all the grids currently in existence globally. While Europe has invested more in upgrading its electricity grid than the U.S., for example, the bloc's current focus on security has already seen national governments cut public spending in order to hit the target of devoting 2 percent of GDP to defense, with capital spending on infrastructure among the casualties. Another obstacle, according to David Brayshaw, a professor at the University of Reading, is the serious knowledge gap that exists regarding the future of integrated power systems in a world increasingly affected by climate change. Brayshaw argues that while Europe's power system is evolving rapidly, driven by renewables and electrification, inadequate research has been conducted into 'how climate change will affect future power systems, or how to design grids that are truly robust.' In the realm of cynical retail politics, and amid Europe's increasingly polarized political landscape, the blackout has been deftly weaponized by populist politicians and vested energy interests. Indeed, for the European far right and nuclear power lobby, the blackout could hardly have come at a better time. For years, far-right skeptics of climate change have viewed the energy transition as a Trojan horse for the 'overreaching ambition of the EU.' But renewables remain very popular with voters, particularly the promise they hold of ushering in high-quality, well-paid jobs and energy self-sufficiency, which has made opposing them a hard sell for populists. However, with the governments of Spain and Portugal reluctant to jump the gun on the ongoing investigations into the April blackout, the resulting information vacuum has given the far right in Spain and beyond the opportunity to tie renewable energy—and by extension climate change policy—to the April incident and blackouts in general, thus sowing doubts among the public about the energy transition. The nuclear power lobby has also been quick to politicize the blackout for commercial advantage. In recent years the industry has watched with dismay as the plummeting costs of renewables has caused production and profits in the sector to fall. In Spain, for example, the country's five nuclear power plants spend increasing amounts of time offline because of the EU electricity system's 'merit order' protocol, which prioritizes the cheapest form of electricity generation at any given time. In Spain and elsewhere, that increasingly means renewables. Indeed, France has long stalled on increasing its meager interconnectivity with Spain's power grid to protect its massive nuclear power industry, which produces around 75 percent of the country's electricity, from Spain's cheaper green power. The highly disputed claim by the Spanish and EU nuclear lobbies that more nuclear power would have ameliorated the effects of the April blackout has now energized the campaign against the Spanish government plans for a complete phaseout of the nuclear industry by 2035. It is also adding momentum to the mini-revival of the industry's fortunes across the bloc, already kickstarted by the scramble to find alternatives to Russian gas. Since the April blackout, even more explosive claims have emerged that implicate renewables in the failure. In May, for example, several news outlets cited anonymous sources in Brussels to support the now comprehensively debunked claim that a botched clandestine stress test of renewable energies was responsible for the outage. Against this backdrop, Europe increasingly risks learning all the wrong lessons from the Iberian blackout. Most notable among them is the wrongheaded notion that renewable energy production must be tailored to fit the capabilities of the existing power network, rather than the other way around. John Boyce is an Irish freelance journalist with a background in international relations and Hispanic affairs. He writes for a variety of publications on Anglo-Irish, Spanish and European politics. The post The Iberian Blackout Put EU Energy Security in the Spotlight appeared first on World Politics Review.
The Herald Scotland
01-05-2025
- Business
- The Herald Scotland
There's no need for energy bills to be so high. We need zonal pricing
In Scotland where most of the electricity is generated by renewables there is no need for us to be charged at the cost of using gas, especially when our energy requirements can be over 50% more because of the cold weather. The constant reference to constraint payments is a red herring as it is assessed as being likely to be 'only' £1.8bn in 2025 according to the National Energy System Operator (NESO) and the vast majority of constraint costs (76%) relate to gas generators, which are typically paid to increase output at certain times and replace constrained generation from other sources to ensure demand is met. The biggest driver of constraint cost variation is the wholesale price of electricity – not because wind farms are paid more to turn down, but because gas generators are paid more to turn up when prices are high. Because the wind-generated electricity is governed by the strike price there will be no loss of income for the wind turbine operators and even if the strike price is increased by £20 per MWh at the next round of government auctions for new wind farms as suggested, wind-generated electricity will still be half the cost of gas-generated electricity. The suggestion that the South of England will need to pay more is also misleading as they like other areas already pay for their electricity at gas generation costs and any change should be minimal and certainly nowhere near the 66% more currently paid in the North of Scotland for their higher energy use. Scotland should be paying a more realistic price for electricity and this would lead to more energy-intensive companies locating here, more households changing to air-sourced heat pumps because they would be cheaper than gas to run and more people changing to electric vehicles, all of which would use a lot of the excess electricity generated in Scotland until the national grid is upgraded. The only section which would lose out would be the wholesale energy companies, no doubt comprising most of the 55 energy companies, which would lose some of their excess unearned profit and the UK Government which would lose tax from the windfall profits which it doesn't use to help those in Scotland who use more energy. Europe's association of power grid operators (ENTSO-E) has recommended that Germany, which has a single large power market zone with a unified price including Luxembourg, should be split into at least two zones to stop high prices in one region bleeding across the entire country. Iain McIntyre, Sauchie. Read more letters Buy back the National Grid Norman McNab's letter (April 28) gave a very good summary of the present sad state of our electricity industry resulting from privatisation in 1990. The government (both UK and Scottish) targets to reduce CO2 emissions in the energy sector are failing and the long-term aims are unlikely to be achieved. This is in spite of the fact that oil and gas are heavily taxed and electricity is taxed at 21% which amounts to approximately £21 billion being paid to the Treasury each year. All these taxes are paid by consumers and with energy prices increasing each year the tax take by the Treasury will increase. The electricity grid is a key part of the electricity supply industry and Mr McNab suggests it is 'very unlikely we could ever afford to buy it back again". This a reasonable assessment but I believe that where there is a will there is a way. One way would be to use the approximate £21 billion tax, or part of it over say five years, to buy back the electricity part of the National Grid Co. This is a way to use consumers' money to buy back what they should own in the first place. A further step could be taken by the Government to build and own all new generating plants using government borrowing. This infrastructure investment should be ring-fenced in the Treasury and the borrowing repaid from a proportion of the price of electricity, not from taxation. These issues could be resolved satisfactorily if government were open to new ideas and not locked in to rigid policies. Charles Scott, Edinburgh. Rethink the River City axe Steve Barnet (Letters, April 30) is perfectly correct in his comments regarding news reporting on the BBC, but I would suggest that he is scraping the top of the iceberg regarding the BBC's saturation coverage about what is happening in England, sometimes including items of trivia, while all too often ignoring or distorting what is happening in the other nations of the UK. On Tuesday I watched an episode of River City and thought the acting of all the cast throughout a distressing and harrowing episode, especially the performances of the young actors and actresses, was superb. All credit to them, and all shame on the BBC for wielding the axe on River City. Scotland cannot afford to lose such talent; the BBC should think again. Ruth Marr, Stirling. A scene from River City (Image: BBC Scotland) Sorry, what did you say? I once said to my wife: "Your hearing is getting very dull." She replied: "I know: I'm going to the jeweller to get it seen to." The jeweller will fix your hearing ?" "Not my hearing, my earring, you deaf old bat." But it's not just us oldies. My son asked his wife to pick up some artesian water. On her return she said: "I couldn't find any Cartesian water." Just think: if old Descartes had been a supplier of water he might famously have said "I drink, therefore I am", though I had a boozy old relative who would just as famously have said "I am, therefore I drink." These mishearings are terribly widespread. During one lively debate about doctors one lady said: "OK, doctors can make mistakes like the rest of us – but can't do wrong deliberately. They have to swear that they will 'First do no harm'. I think it's called the Hypocritical Oath." Well, there's a comfort. Donald M Manson, Prestwick.
Yahoo
29-04-2025
- Business
- Yahoo
Germany advised to split power market to reflect regional cost differences
Germany should contemplate dividing its electricity market into distinct five price zones to more accurately represent varying regional costs, according to a report by the European Network of Transmission System Operators for Electricity (ENTSO-E). The current unified power market zone, inclusive of Luxembourg, faces grid congestion and disparities in renewable energy distribution, prompting the recommendation. ENTSO-E's examination of different scenarios for segmenting Germany's market indicated that all options could be economically advantageous. A division into five bidding zones could be the most economically efficient strategy, estimated to cost between €251m ($285.5m) and €339m for 2025. This segmentation could potentially reduce prices in the northern regions, where renewable energy is plentiful, but might increase costs in southern areas,where industrial consumption is higher, according to a Reuters report. The debate over the need for German market segmentation has affected cross-border infrastructure projects. Sweden, which has split its electricity market into four zones, has stated that it will withhold approval for a new power cable to Germany unless the latter restructures its market. EU member states have a six-month window to deliberate on ENTSO-E's findings, after which the European Commission may propose amendments to the bidding zones if a consensus is not reached. Contrary to ENTSO-E's recommendations, Germany's newly formed coalition government has expressed opposition to the market split, fearing it could lead to price hikes in the south, affecting industrial activity. Supporting the government's position, Germany's primary transmission operators – 50hertz, Amprion, TenneT and TransnetBW – have criticised the report for its reliance on outdated data and minimal projected benefits when compared to the overall system costs. They warned that a market division could diminish market liquidity and escalate expenses. In April 2025, Germany's energy grid regulator, the Bundesnetzagentur, proposed a plan that could lead to savings of €1.5bn ($1.71bn) for power customers from 2026 to 2028 by removing payments to small conventional power generation units "Germany advised to split power market to reflect regional cost differences" was originally created and published by Power Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Reuters
29-04-2025
- Business
- Reuters
Explainer: What's behind the request for Germany to split its power market?
FRANKFURT, April 29 (Reuters) - Germany has been landed with demands to split its 25 year-old single electricity market into up to five price bidding zones by European power grid lobby ENTSO-E, that wants to stop intra-German price differences leaking to neighbouring countries. Here are facts and considerations around the issue as a six-month consultation period started on Monday. Make sense of the latest ESG trends affecting companies and governments with the Reuters Sustainable Switch newsletter. Sign up here. WHY HAS THE TOPIC COME TO THE FORE? In its Bidding Zone Review, the European network companies' group argues that dividing Germany's huge market area into a number of zones would bring more efficiency and reduce management costs in Germany and outside. A scenario modelled on 2019 conditions showed a five-way zonal split could save up to 339 million euros of grid management costs a year, reduce bottlenecks, and help more renewable power to be transmitted, it said. German grid handling costs ran to 2.8 billion euros ($3.19 billion) in 2024, standing in the way of steering producers' and consumers' behaviour. WHAT ENTSO-E HOPES TO ACHIEVE High renewable generation in Germany's north, while industry demand is concentrated in the south, distorts prices in a single zone over a large geography, say some organisations, economists, northern federal states, and Germany's EU partners such as Sweden, which operates a connecting cable. Northern areas cannot benefit from cheap local power as everyone pays too much when the entire national grid bill is spread around all, they say. Local zones with realistic prices would encourage better participation in battery storage, electric cars and heat pumps. WHY GERMANY IS OPPOSED Germany concedes its network expansion is slow but it has clear targets for building north-south transmission highways to overcome the structural problems. It cannot ditch these now to adopt an entirely new system, say the coalition government, southern states and industries, namely energy, cars and chemicals. Germany's export-geared industries are struggling with recession and, if burdened with even higher costs in the south, might decamp, withdraw employment. Meanwhile, transmission companies (TSOs), under the watch of the energy regulator, are clearly making progress with big new transport lines. POSSIBLE CONSEQUENCES OF AN ESCALATION If the EU Commission, led by German national Ursula von der Leyen, adopted ENTSO-E's stance and pitted itself against Berlin, the row could rattle the bloc's biggest economy and give rise to right-wing and anti-EU sentiments. Or, if Germany persisted in its opposition to a reconfiguration, it could face retaliation at a time when it needs good relations with its EU trade partners. If member states do not agree how to proceed within six months, the Commission has a further six months to decide on a course of action. HOW THE ISSUE COULD BE SILENTLY REMEDIED Germany can hope to maintain its unified price zone if it adheres to a long-term requirement under an EU internal energy market regulation for 70% of its border interconnection capacity being ready for tradable power flows by year-end. TSOs are optimistic they can prove their progress on this target, a bid supported by Germany's power bourse, the European Energy Exchange ( opens new tab. "Then, there would be no reason to break up this large liquidity pool (Germany's status quo)," said EEX chief executive, Peter Reitz, in a call with reporters on Monday.
Euronews
29-04-2025
- Euronews
Spain, Portugal and parts of France hit by massive power outage
ADVERTISEMENT Spain and Portugal experienced a widespread power outage on Monday, leaving millions without electricity in a snap blackout. In Portugal, official sources told domestic media that the outage, which hit around late morning local time, was nationwide, while similar reports emerged from Spain. Madrid's Barajas International Airport and Lisbon's Humberto Delgado were closed after being left without power, and telecommunications have also been affected, with residents across the two countries saying they have no access to mobile networks. Meanwhile, other airports have come to a standstill throughout the Iberian Peninsula, and flights from Brussels and other European cities to Spain and Portugal have been cancelled, leaving hundreds stranded, Euronews has learned. Related What could have caused the major power outage in Spain and Portugal? Experts weigh in Numerous passengers have also been left stranded in the metro systems of the Spanish and Portuguese capitals, with trains stuck in tunnels between stations, Euronews Portugal reports. The blackout has affected hospitals, too, including Madrid's La Paz and multiple medical facilities in Portugal, with some being forced to cancel surgeries. A Metro station in Madrid remains shut down during a blackout on Monday, 28 April 2025 Euronews/Clea Skopeliti A source at a hospital in Setúbal told Euronews that the facility has a backup generator capable of operating for 8-12 hours in the hospital's critical departments. However, there is currently no water supply. The hospital has still not received any information on when the power supply will be back or how to proceed, and it has also lost its internet access. Citizens have been asked not to dial 112 unless in a genuine emergency to avoid overloading the lines. The Spanish government has convened an emergency session at Moncloa and is monitoring the situation as it develops, and Prime Minister Pedro Sánchez has visited the control centre of Red Electrica, the company that operates Spain's electric grid, according to our colleagues at Euronews Spain. The European Commission issued a statement on Monday afternoon, saying it was "in contact with the national authorities of Spain and Portugal as well as (European electricity transmission system operators' network) ENTSO-E to understand the underlying cause and the impact of the situation." "As per EU legislation in place ... there are protocols in place to restore the functioning of the system," the statement read. "Following the massive blackout, we stand ready to support Spain and Portugal in putting their systems back on track," European Commissioner for Energy and Housing Dan Jørgensen said in a post on X. "Power is already back in some regions. Network operators and ENTSO-E (are) doing everything possible on the ground. Solidarity and unity are key for our Energy Union.' 'Nobody was expecting a thing like this' Juan Muñoz, the owner of a butcher's shop in the centre of Madrid, said the situation was uncertain for his products. Like everyone else, he had been caught off guard by the blackout: 'I was very surprised, as I imagine everyone else was – nobody was expecting a thing like this.' Muñoz said he had taken what action he could but was concerned about how long the outage would last. 'We've taken all the meat and put it in the walk-in fridge, and have kept it shut to retain the temperature for as long as possible,' he said. 'We've no idea how long this will last. Listening to the radio, they say they don't know. I've heard that in some areas, some power is starting to return. But we'll see – if it's a question of several hours, the chicken will be destroyed.' ADVERTISEMENT Juan Muñoz in front of his shop that has been closed due to a blackout, in Madrid, 28 April 2025 Euronews/Clea Skopeliti Mariana Guzman, an employee at an ice-cream shop and cafe in the city centre, said the business would stand to lose dozens of vats of ice-cream if the power didn't return within the next hour. Standing over the counter, she told Euronews: 'We're just waiting to see what will happen because realistically, if it doesn't return by then, we'll have a big loss – they'll start to melt and once that happens, it's very dangerous to refreeze them. It's already been more than an hour.' 'The street is closed and the businesses are concerned … [because] you could stand to lose a lot.' Gradual restoration in the works Residents of Andorra and parts of France bordering Spain were also reporting being hit by the blackout. Further outages have been reported as far as Belgium, according to the latest information. ADVERTISEMENT The electricity service has since been restored in France after some areas suffered a partial outage, sources from the national grid manager RTE said, as quoted by the Spanish news agency Efe. The sources added that RTE is exploring ways to relocate the electricity to help reconnect Spain. The Basque Country has also had its power restored, according to reports. By Monday afternoon, Red Eléctrica stated that it had begun gradually restoring power in both the north and south of Spain. However, the process of getting everyone back on the grid might take between 6 and ten hours for technical reasons, it added. According to Red Eléctrica, electricity consumption across Spain dropped by 50% at around 12:30 pm on Monday, indicating the widespread scale of what the company said was an "exceptional and completely extraordinary" blackout. ADVERTISEMENT The cause is yet unclear. Endesa and Iberdrola, Spain's two major electricity providers, continue to investigate the incident. Domestic media said in the immediate aftermath of the blackout that it might be related to issues with the European electric grid, which affected national grids in the Iberian Peninsula. A fire in the south-west of France, on the Alaric mountain, which damaged a high-voltage power line between Perpignan and eastern Narbonne, has also been identified as a possible cause, Portugal's national electric company REN said. Reports on a rare atmospheric phenomenon which have also been circulating have been denied by REN to private channel SIC. ADVERTISEMENT Meanwhile, the Spanish National Intelligence Centre has not ruled out the possibility of a cyberattack, while the Portuguese government has also suggested the same. However, "no evidence has yet been identified that points to a cyberattack" to justify the blackout, Portugal's National Cybersecurity Centre (CNCS) said in a statement on Monday. "Such a widespread grid failure is extremely unusual and could be caused by a number of things: there could be a physical fault in the grid which brings down power, a coordinated cyber attack could be behind it, or a dramatic imbalance between demand and supply has tipped the grid system over the edge," Taco Engelaar, managing director at energy infrastructure experts Neara told Euronews. "If it's a system fault, then the interconnectivity between different regional and national grids could be leading to the large footprint of outages we're seeing today," he added. ADVERTISEMENT "The same goes for a cyber attack - lots of these systems are connected and share assets - taking down one could take down many."
