EU pushes to end Iberia's electrical island after the 2025 blackout
The Bay of Biscay link will double France-Spain capacity to 5GW; the EU Grids Package and the ENTSO-E blackout report frame interconnection as a security priority
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Summary
The 20 March 2026 ENTSO-E final report on the 28 April 2025 Spain-Portugal blackout, Europe's worst in 20 years, blamed voltage and reactive-power control failures, not Renewables, and underscored the peninsula's status as a near-island with thin links to the rest of the European grid. The EU's response runs through the Commission's Grids Package (faster permitting, stronger interconnection targets) and the long-delayed Bay of Biscay France-Spain link, which will double cross-border capacity to 5GW. The European Investment Bank added €1.6bn to that project in June 2025 atop a €578m EU grant. Iberia still falls short of the EU's 15% interconnection target.
By the numbers
- 28 April 2025, Iberian blackout; worst in Europe in two decades.
- 20 March 2026, ENTSO-E expert-panel final report published.
- 5 GW, France-Spain capacity once the Bay of Biscay link completes (a doubling).
- €1.6bn, additional EIB financing committed June 2025 (atop a €578m EU grant).
- 15%, EU interconnection target Iberia still misses.
Why it matters
The blackout reframed interconnection from a market-efficiency nicety to a security and reliability imperative. A weakly-linked Iberia is more prone to cascading failure; the EU is betting permitting reform and cross-border lines can harden a grid leaning on variable renewables.
What to watch
- Bay of Biscay link commissioning timeline and any further delays.
- Whether the Grids Package accelerates permitting in practice.
- Spanish grid-code changes on voltage/reactive-power control post-report.