Portugal is experiencing a sharp increase in electricity prices after temporarily halting imports from Spain in the wake of a major blackout.
The grid disruption on April 28, which originated in Spain, led Portuguese authorities to limit cross-border electricity flows as a safety measure, interrupting a decades-long tradition of energy cooperation.
Grid glitch underlined Portuguese reliance on Spain
The blackout highlighted Portugal’s dependence on Spanish power, with around one-fifth of its electricity typically sourced from across the border. Following the suspension, Portuguese wholesale electricity prices surged to nearly five times the Spanish rate, although long-term contracts shielded most households and businesses from immediate cost spikes.
REN, Portugal’s national grid operator, justified the import pause as a necessary step to maintain domestic energy system stability. While a limited volume of imports resumed on May 9, the country’s electricity prices remained elevated, though the gap with Spain began to close.
Iberian imbalance
The event has drawn attention to the imbalance in renewable energy development between the two nations. Spain’s rapid expansion of solar power has enabled it to offer cheaper, and at times even free, electricity during peak generation periods. Portugal, by contrast, has been slower to adopt large-scale solar, increasing its reliance on imported energy.
Industry leaders have cautioned against isolating Portugal from regional energy flows, warning that such a move could undermine economic competitiveness. They also acknowledged the need for stronger infrastructure and safeguards to prevent future disruptions.
Gradual return to normality
A phased return to full cross-border electricity trading is expected, as authorities focus on restoring both market stability and technical resilience. The recent crisis has intensified calls for strategic planning around energy independence, system integration, and long-term sustainability across the Iberian Peninsula.
The episode underscores the vulnerability of interconnected grids – and the importance of collaboration in building a more resilient regional energy future.
