Iberian Blackout May Drive Stronger EU Cooperation on Interconnectors

The recent widespread blackout in the Iberian Peninsula may hasten collaborative efforts to enhance interconnectors in southwest Europe according to LSEG analyst Margarita Flores, in a recent article for Montel.

She noted that expanding interconnections would not only improve energy security for both Spain and France but also speed up the deployment of renewable energy sources. Her remarks followed the major outage on April 28, which was triggered by a sequence of generation losses totaling about 2.2 GW in southern Spain.

Calls for More Interconnectors

Spanish energy ministry officials confirmed that Spain and Portugal are preparing to jointly request the EU energy commissioner and the French energy minister to advance the construction of planned cross-border interconnections.

Spanish energy minister Sara Aagesen recently emphasized that the need for new links between Spain and France has escalated to a European-level concern, especially in light of the blackout.

Currently, there are six interconnectors between Spain and France, providing a combined capacity of 2.8 GW. One additional link is under construction, the Biscay Gulf HVDC interconnector, but the future of two other projects remains uncertain.

Aagesen highlighted that while the Bay of Biscay interconnector is progressing and expected to be completed in the coming years, the two proposed cross-Pyrenees projects have faced long-standing delays.

Technical and Political Challenges

The Bay of Biscay cable, with a planned capacity of 2.2 GW, is anticipated to be operational by 2028. Other proposed interconnectors, such as those between Aragon and the Atlantic Pyrenees and between Navarra and Landes, have yet to reach a final investment decision.

The Pyrenees mountains present a significant technical barrier, making the construction of high-voltage lines both complex and costly, whether routed overland or offshore.

Another challenge is achieving the right mix of renewable and controllable energy sources to ensure grid stability.

French Reservations

Some analysts believe France is hesitant to build more interconnections, as this could allow more affordable Spanish electricity into the French market, potentially affecting the profitability of France’s nuclear exports.

French analyst Nicolas Goldberg noted that while increased interconnection would benefit Spanish producers, French consumers would also see advantages. He argued that decisions should focus on shared, long-term benefits.

LSEG’s projections suggest that electricity prices in Spain and France will converge once the Bay of Biscay interconnector is operational, though this effect may not last beyond 2030 due to ongoing transmission constraints.

French politician Jean-Philippe Tanguy articulated opposition to further integration, stating that unless Spain shifts away from intermittent renewables toward more stable baseload generation, France should not risk its own system.

Looking Ahead

Some experts suggest that granting greater authority to EU-wide agencies like Acer and Entso-E could improve coordination and enforcement regarding interconnections. However, EU officials stress that advancing these projects ultimately depends on political will.

From the French perspective, the urgency for new links is low, given their already robust connections with Germany, Italy, and Switzerland. In contrast, the Iberian Peninsula, often described as an "energy island," is more reliant on improved interconnections to enhance security and market efficiency.

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