Portugal's Electricity Prices Surge After April 28 Blackout, Blamed on Grid Management Issues

Portugal experienced a significant increase in electricity prices following a decision to suspend imports from Spain after a widespread blackout on April 28. The Portuguese government's move was a precautionary measure, leading to a surge in electricity costs as the country relied more heavily on domestic sources and increased gas imports from 7.5% to 14.3% of its energy needs. Prior to the blackout, Portugal imported about 35% of its electricity from Spain, with 82% of the Iberian Peninsula's electricity coming from clean sources.

The blackout, which affected both Spain and Portugal, has been attributed to issues with system management and the electrical grid in Spain, rather than problems with renewable energy sources. Portugal's Energy Minister, Maria da Graça Carvalho, emphasized that the incident was not due to the use of renewables but rather a matter of grid resilience and power management. The economic impact of the blackout is estimated to be up to 1 billion euros, equivalent to Portugal's average daily GDP.

In response to the blackout, Portugal has begun to gradually resume electricity imports from Spain, although at a reduced capacity of 1,000 megawatts per day, compared to the usual volume. The Portuguese government is also seeking an independent audit from the European Union to investigate the causes of the blackout and is pushing for increased interconnections with France to enhance energy security. The cost of suspending electricity imports from Spain is estimated at over 17 million euros.