meed-logo

line1 line2 line3
SIGN IN / REGISTER

Iberian power outage offers valuable lessons

2 May 2025

Commentary
Jennifer Aguinaldo
Energy & technology editor

The root cause of the power outages that gripped parts of the Iberian Peninsula on 28 April has yet to be established, pending a detailed investigation into what triggered the loss of power in large swathes of Portugal and Spain.

Ongoing investigations aside, Spain’s national electricity grid operator, Red Electrica, has ruled out a cyber attack or sudden spike in renewables as the main cause of the outage, which affected transport, retail and healthcare services, among others.

Insurance claims arising from the outages could reach between $300m and $600m in Spain and significantly less in Portugal, according to some sources, while the Riyadh-based Digital Cooperation Organisation cites losses of up to €1.3bn ($1.47bn) for the Spanish economy, based on Spain’s self-employed workers’ association, ATA.

But the highest cost could come in a non-monetary form. It would require probing into Spain’s utility infrastructure, which Red Electrica describes as Europe’s “best and most resilient”, and that of every European country and everywhere else.

Red Electrica president Beatriz Corredor has been quick to defend her firm, saying there is no such thing as zero risk.

The speed at which Spain, which exports renewable power to Portugal, restored power in affected areas lends credence to Red’s best-in-Europe claim if one is willing to forego the question of how it could have happened or been avoided in the first place.

Pending the results of the investigation, analysts and experts have offered their insights on the subject.

Writing on Linkedin, Thierry Lepercq, founder and president at Hydeal, describes the Spanish blackout as “the most significant power event in decades”, adding it is likely the first of a series of crippling crashes that will result from the inherent conflict between decarbonisation, or aiming at 100% renewables; security of supply; and energy affordability.

Lepercq is confident that the lesson will soon be clear: the power outage was all about inertia.

He predicts that the lack of electricity system planning will necessitate radical action. This could involve the “near complete” stop of new variable – solar and wind – installations and the fast ramp-up of fully-dispatchable, inertia-providing capacity from combined-cycle gas turbines (CCGTs) initially powered by natural gas, and as soon as possible, from competitive green hydrogen.

Another senior consultant at an international engineering services firm with offices in Dubai tells MEED that, considering a lot of caveats, the blackout resulted from a mix of high solar reliance, low grid inertia, voltage oscillations and insufficient backup systems, with no single cause confirmed. Some tripping, which catalysed the inertia problem, has also been reported, he notes. 

Prevention strategies could include enhancing firm power, expanding storage, improving monitoring and strengthening interconnections.

Morocco, for instance, played a key role in restoring power to Spain, highlighting the benefits of power pooling, where countries share an integrated generation capacity and grid stability across borders.

Reviewing energy policies is also key, such as looking at grid codes with clearer requirements on how much energy storage should be on the system in proportion to renewable energy development, according to the consultant.

This event offers valuable lessons for regional utility stakeholders, particularly their capacity planning divisions. Over 100GW of renewable energy capacity is planned to be built across the GCC states before 2030, excluding those catering to private clients, with certain developments and projects looking to be powered 100% by renewable energy by 2030.

The Iberian story shows there are as many potential solutions or measures, with none offering zero risk, to address potential points of failure in today’s electricity system, which has been undergoing major re-engineering works to fit the 2030 net-zero scenario.

It is also worth mentioning that certain jurisdictions in the Gulf and broader Middle East and North Africa region regularly suffer from power outages in the summer, mainly due to rising temperatures and underinvestment in electricity generation and distribution networks, and notwithstanding a very negligible amount of renewable power on their grids.

Credit: Crowd at Malaga Maria Zambrano train station entrance due to blackout in Spain and Europe, 28 April 2025. Shutterstock

https://image.digitalinsightresearch.in/uploads/NewsArticle/13802518/main.gif
Jennifer Aguinaldo

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Saudi Arabia’s Misk tenders residential package

    17 April 2026

     

    Saudi Arabia’s Mohammed Bin Salman Foundation (Misk Foundation) has floated two tenders for the construction of a residential community in District 5 of Prince Mohammed Bin Salman Nonprofit City in Riyadh.

    The first tender is split into two packages, one that covers the construction of 237 villas and the other covering 223.

    The second tender covers the construction of a community centre, swimming pool, mosque and school.

    The bid submission deadline for both tenders is 27 April.

    Misk Foundation is jointly developing the project in collaboration with local real estate developer Kinan.

    The estimated SR900m ($240m) project will span an area of about 121,692 square metres.

    In March 2022, the Misk Foundation released the masterplan for Prince Mohammed Bin Salman Nonprofit City.

    Saudi Crown Prince Mohammed Bin Salman Bin Abdulaziz Al-Saud said in November 2021 that the Misk Foundation development in Riyadh will be the world’s first non-profit city.

    “Prince Mohammed Bin Salman Nonprofit City, which implements the digital twin model, will host academies; colleges; Misk schools; a conference centre; a science museum; and a creative centre offering a space to support the ambitions of innovators in sciences and new-generation technology, such as AI [artificial intelligence], IoT [Internet of Things] and robotics,” he said.  

    “It will also feature an arts academy and art gallery, a performing arts theatre, a play area, a cooking academy and an integrated residential complex.

    “In addition, the city will host venture capital firms and investors to support and incubate innovative enterprises to drive community contributions from around the world.”

    The consultants working on the project include Germany’s Albert Speer + Partner as master planner and architect, and UK-based Buro Happold as the engineer. The project manager for the first phase of construction is UK-based Mace.

    MEED’s April 2026 report on Saudi Arabia includes:

    > COMMENT: Risk accelerates Saudi spending shift
    > GVT &: ECONOMY: Riyadh navigates a changed landscape
    > BANKING: Testing times for Saudi banks
    > UPSTREAM: Offshore oil and gas projects to dominate Aramco capex in 2026
    > DOWNSTREAM: Saudi downstream projects market enters lean period
    > POWER: Wind power gathers pace in Saudi Arabia
    > WATER: Sharakat plan signals next phase of Saudi water expansion
    > CONSTRUCTION: Saudi construction enters a period of strategic readjustment
    > TRANSPORT: Rail expansion powers Saudi Arabia’s infrastructure push

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16440697/main.png
    Yasir Iqbal
  • Saipem wins $400m of Safaniya field work from Aramco

    17 April 2026

    Register for MEED’s 14-day trial access 

    Italian contractor Saipem has announced winning two offshore engineering, procurement, construction and installation (EPCI) contracts in Saudi Arabia, worth approximately $400m, which represent Saudi Aramco’s next expansion phase of the Safaniya offshore oil field development.

    MEED recently reported that Aramco had selected Saipem for the two contracts – numbers 154 and 155 on its Contract Release and Purchase Order (CRPO) system.

    Fabrication activities for the two contracts will be executed at Saipem’s Saudi fabrication yard in Dammam, Saipem Taqa Al-Rushaid Fabricators Company, the Milan-listed company said in its statement.

    Prior to winning the contracts for CRPOs 154 and 155, Saipem also secured the contract for CRPO 156, valued at about $500m, which forms the third package in Aramco’s latest Safaniya expansion phase.

    Aramco issued the three CRPOs to its Long-Term Agreement (LTA) pool of offshore contractors in February last year, with an initial bid submission deadline of 31 July. Aramco later extended the deadline to 28 August and then again to 31 August, with LTA contractors submitting bids on that date.

    The brief scope of EPCI work on the three tenders is as follows:

    CRPO 154:

    EPCI of a water injection tie-in platform; two production deck modules (PDMs)/wellhead platforms; approximately 5 kilometres (km) of associated pipeline, with diameters of 24 inches, and approximately 15km of 15kV cables at Safaniya; hook-ups; and subsea valve skids.

    CRPO 155:

    EPCI of four PDMs; intra-field and main trunklines to shore; and jackets.

    CRPO 156:

    EPCI of a 48-inch trunkline, covering a distance of about 65km offshore and 12km onshore, from the Safaniya offshore oil field to the onshore processing facility; and associated structures such as subsea hook-ups.

    The Safaniya field is the world’s largest offshore oil field, with a production capacity of nearly 1.2 million barrels a day. Discovered in 1951, the field is located in the Gulf waters, approximately 265km north of Aramco’s headquarters in Dhahran.

    READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDF

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16439869/main5806.jpg
    Indrajit Sen
  • Ora Developers adds land bank to its Bayn masterplan

    17 April 2026

    Egyptian firm Ora Developers has signed a land acquisition agreement with Abu Dhabi-based developer Modon Holding to acquire an additional 4.8 million square metres (sq m) of land in the Ghantoot area between Abu Dhabi and Dubai.

    Ora Developers said that the land acquisition will increase the existing Bayn masterplan from 4.8 million sq m to 9.6 million sq m.

    The firm added that the total investment in the masterplan upon completion is expected to reach AED30bn ($8bn).

    In January, Ora Developers appointed six engineering consultancies to lead the development of the first phase of its Bayn residential community project.

    The developer appointed UK-based firm Mace to lead the overall project management.

    Canadian firm WSP will serve as the masterplan, infrastructure, landscape and water bodies design consultant, as reported by MEED in May last year.

    Another US firm, Aecom, will provide construction supervision services.

    Hong Kong’s 10 Design is the project’s architectural concept design consultant.

    Local firm Dewan Architects & Engineers is the project’s design consultant and architect of record.

    The UK’s Currie & Brown is the cost consultant.

    The first phase will offer 805 villas and townhouses, and the project is expected to be completed in 2028.

    The project will also include a neighbourhood park, sports facilities, a water park, a five-star hotel and a shopping mall.

    In December last year, Abu Dhabi government-owned contractor NMDC Group won a AED142m ($39m) contract from Ora Developers.

    The contract scope covers the execution of enabling works on the Bayn masterplan.

    The main construction works on the project's first phase are expected to begin in the second quarter of this year.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16439214/main.jpg
    Yasir Iqbal
  • Firms prepare best offers for Riyadh Metro Line 7

    17 April 2026

     

    Consortiums are preparing to submit best and final offers on 21 April for the design and build of Riyadh Metro’s Line 7.

    The Royal Commission for Riyadh City (RCRC) opened the commercial proposals for the contract earlier this month, as MEED reported.

    Contractors submitted their commercial proposals on 31 January.

    In February, MEED reported that the RCRC had started post-tender clarifications with bidders for the project.

    The project involves constructing a metro line linking the Qiddiya Entertainment City development, King Abdullah International Gardens, King Salman Park, Misk City and Diriyah Gate.

    The line will be about 65 kilometres (km) long, of which 47km will be underground and 19km will be elevated. It will have 19 stations, 14 of which will be underground and five above ground.

    According to sources close to the project, the consortiums are:

    • Alstom (France) / Webuild (Italy) / Nesma (local) / China Harbour Engineering Company (China)
    • Siemens (Germany) / FCC (Spain) / Orascom Construction (Egypt) / Shibh Al-Jazira Contracting Company (local)
    • Hitachi Rail (Japan) / Larsen & Toubro (India) / Albawani (local) / Kalyon (Turkiye) / Cengiz (Turkiye) 
    • CRRC (China) / Mapa (Turkiye) / Limak (Turkiye)

    Earlier this month, MEED exclusively reported that firms have submitted bids for a contract covering the project management consultancy services for the construction of Riyadh Metro Line 7.

    Riyadh Metro’s first phase features six lines with 84 stations. The RCRC completed the phased roll-out of the Riyadh Metro network when it started operating the Orange Line in January this year.

    Construction has also begun on the next phase of Riyadh Metro, the Line 2 extension.

    In July last year, MEED exclusively reported that the RCRC had awarded an estimated $800m-$900m contract for the project.

    The contract was awarded to Arriyadh New Mobility Consortium, led by Italy’s Webuild. 

    The group also includes India’s Larsen & Toubro, Saudi Arabia’s Nesma & Partners and France’s Alstom.

    The Orange Line, also known as Line 3, stretches from east to west, from Jeddah Road to the Second Eastern Ring Road, covering a total distance of 41km. 

    The line covers 8.4km, of which 1.3km is elevated and 7.1km is underground. It includes five stations – two elevated and three underground.

    It will run from the current terminus of Line 2 at King Saud University (KSU) and continue to new stations at KSU Medical City, KSU West, Diriyah East and Diriyah Central – where it will interchange with the planned Line 7 – before terminating at Diriyah South.

    MEED’s April 2026 report on Saudi Arabia includes:

    > COMMENT: Risk accelerates Saudi spending shift
    > GVT &: ECONOMY: Riyadh navigates a changed landscape
    > BANKING: Testing times for Saudi banks
    > UPSTREAM: Offshore oil and gas projects to dominate Aramco capex in 2026
    > DOWNSTREAM: Saudi downstream projects market enters lean period
    > POWER: Wind power gathers pace in Saudi Arabia
    > WATER: Sharakat plan signals next phase of Saudi water expansion
    > CONSTRUCTION: Saudi construction enters a period of strategic readjustment
    > TRANSPORT: Rail expansion powers Saudi Arabia’s infrastructure push

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16438898/main.jpg
    Yasir Iqbal
  • Kuwait prepares to tender LNG project

    17 April 2026

    Kuwait's Central Agency for Public Tenders (Capt) is preparing to issue a tender for the construction of an LNG reliquefaction unit at Al-Zour LNG import terminal.

    The client on the project is state-owned Kuwait Integrated Petroleum Industries Company (Kipic).

    The project is focused on the development of a boil-off-gas unit at the import terminal, according to a report in Kuwait’s Al-Anba newspaper.

    The project scope include engineering, procurement and construction works, along with pre-commissioning, commissioning and performance testing services.

    The list of pre-qualified companies is:

    • Fluor (US)
    • GS Engineering & Construction (South Korea)
    • Tecnicas Reunidas (Spain)
    • Larsen & Toubro (India)
    • Hyundai Engineering (South Korea)
    • CTCI Corporation (Taiwan)
    • Daewoo Engineering & Construction (South Korea)
    • Hyundai Engineering & Construction (South Korea)
    • Saipem (Italy)
    • Samsung Engineering (South Korea)
    • Sinopec Engineering (China)
    • JGC Holdings (Japan)
    • KBR (US)
    • China National Petroleum Corporation (China)
    • Technip (France)

    Kuwait’s LNG import terminal is currently not operating due to disruption caused by the US and Israel’s war with Iran.

    READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDF

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16426605/main.png
    Wil Crisp