Five months after a massive blackout plunged Spain and Portugal into darkness, a new report warns Europe risks more crises unless it invests heavily in its power grids.
The Institute for Energy Economics and Financial Analysis (IEEFA) says the April outage, which left parts of the Iberian Peninsula without power for more than six hours, exposed how fragile Europe’s networks are in the face of rising renewable penetration.
Grid frequency should have been restored in 30 minutes – yet some areas waited all night.
Investigators pointed to inadequate use of frequency reserves by the Spanish transmission system operator.
IEEFA says the real lesson is that Europe’s grids are outdated and unresponsive.
Without major upgrades, renewables will continue to be wasted, queues of new projects will keep growing, and security of supply will be undermined.
A joint study by IEEFA, Ember, E3G and Beyond Fossil Fuels earlier this year found Europe already had more than three times the amount of renewable capacity in connection queues than needed to hit 2030 climate targets.
Curtailment of clean energy was at record highs in 2024, with outdated grid processes and weak balancing systems to blame.
The financial case for investment is strong. Brussels estimates €477 billion (£408 billion) will be needed for EU transmission grids by 2040.
Italy’s Terna showed what’s possible in July when it became the first grid operator to issue bonds under the European Green Bond Standard – a €750 million (£642 million) deal that was nearly five times oversubscribed.
With most transmission system operators enjoying investment-grade ratings, IEEFA argues there is no excuse not to tap sustainable finance to fund upgrades.
The European Commission has already issued guidance on “anticipatory investment”, allowing projects to be approved before demand is visible.
It is also preparing a European Grids Package, which campaigners say must include tougher governance, legal mandates and stronger incentives for storage and flexibility.
Spain has launched its own investigation into the April blackout, but IEEFA warns regulators cannot keep treating grid resilience as an afterthought.
“Without sufficient capital planning by TSOs, renewables growth will stall and grid resilience will weaken,” the report concludes.
Europe’s grids, once seen as the weak link, could become the foundation of resilience, affordability and climate neutrality. Fail to invest, and blackouts like April’s will not be the last.
