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
  • Lebanon sets October deadline for power generation projects

    23 September 2026

     

    Lebanon’s Electricity Regulatory Authority (ERA) has extended the deadline for private sector companies to submit expressions of interest (EoIs) for several upcoming power generation projects.

    The new deadline is 15 October. The original deadline was 30 September.

    The regulator said the extension follows “requests received from interested applicants for additional time to finalise and submit the required documentation”.

    The EoI covers up to five grid-connected solar photovoltaic projects with a combined installed capacity of 350 megawatts-peak. The projects are also expected to include battery energy storage systems with a combined capacity of 1,000 megawatt-hours. 

    The regulator is also seeking proposals for distributed dual-fired thermal power plants with net capacities ranging from 20MW to 100MW. The plants are expected to run on natural gas as the primary fuel and heavy fuel oil as a backup. 

    The ERA invited companies to submit EoIs at the beginning of August.

    On 11 August, the ERA issued its first set of clarifications following queries regarding the EoI. The clarifications confirmed that “proposed dual-fired plants should be gas-ready”, with natural-gas infrastructure planned but no implementation timeline yet available.

    The ERA also said key power purchase agreement (PPA) terms, including duration, tariff structure and indexation mechanisms, will be determined “during a future procurement process”.

    Electricity reforms

    The EoI comes as the government advances wider reforms to Lebanon’s electricity sector. On 4 September, the Higher Council for Privatisation and Partnership discussed steps to transform the state utility Electricite du Liban (EDL) into a company, including creating a new entity, transferring its assets, and taking measures to protect employees’ rights during the transition.

    The government said the restructuring aims to improve the financial sustainability of the electricity sector, recover costs and improve electricity supply. 

    On 18 September, the council discussed a draft decree to establish the new EDL company, evaluate its assets and separate its activities. However, it deferred a decision for further study.

    The ERA was established earlier this year, more than two decades after it was envisaged under Law No. 462/2002 but not implemented due to political delays. The Energy & Water Ministry and EDL previously oversaw the electricity sector.

    Lebanon’s electricity sector continues to face insufficient generation capacity, fuel supply constraints, ageing generation assets and limited grid flexibility. These challenges have led to prolonged electricity shortages and increased reliance on private diesel generation and distributed solar systems, prompting the government to seek additional private investment in new generation capacity. 

    According to the EoI document, the projects are expected to be structured as independent power producer (IPP) schemes. The competent public authority will determine any future contractual arrangements, including PPAs, under the applicable legal framework. 

    The ERA said the EoI is open to private investors, IPP operators, engineering, procurement and construction contractors, equipment suppliers and consortiums. It aims to assess market interest, identify potential generation projects, and evaluate the technical and financial capabilities of prospective developers. 

    Respondents must provide information on their technical and financial capabilities, proposed project locations, grid connection plans and relevant project experience. 

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19906210/main.jpg
    Mark Dowdall
  • Jedco maps next phase of Jeddah airport expansion

    22 September 2026

     

    Jeddah Airports Company (Jedco) has outlined plans for the next phase of expansion at King Abdulaziz International airport (KAIA) in Jeddah.

    The programme comprises six upcoming contractor packages spanning airside works, terminal upgrades and utilities as Jedco advances its long-term expansion plans.

    The opportunities include airfield rehabilitation; a five-year construction framework covering multiple workstreams and facility types; a Terminal 3A (T3A) package; Terminal 1 (T1) optimisation; a fuel farm; and Concourse C works.

    The packages cover terminal buildings and ancillary facilities, runways, taxiways and aprons, hangars, fuel systems, airside facilities, supporting infrastructure and utility networks.

    Tendering and award activity will be staggered over the next two years. Airfield rehabilitation is targeted for Q3 2026. The construction framework is scheduled for Q4 2026 and will run for five years.

    The T3A package is planned for Q1 2027 and will be delivered under an early contractor involvement contract. Local contractors are encouraged to bid as part of a joint venture with an experienced international partner.

    T1 optimisation is planned for Q4 2027, the fuel farm for Q2 2027, and Concourse C – currently the latest of the six milestones – for Q2 2028.

    The new packages add detail to Jedco’s wider expansion plans disclosed in 2023, when it was reported that the company would invest SR115bn ($31bn) to increase KAIA’s capacity to 114 million passengers a year, with an overall completion target of 2031.

    Jedco has recently awarded several significant contracts linked to the airport’s upgrade programme.

    In November 2024, a joint venture of local Algihaz Contracting and Turkey’s TAV was awarded a contract to rehabilitate the South Terminal to serve Umrah and Hajj pilgrims, with Singapore’s Surbana Jurong acting as consultant.

    Earlier that year, Jedco also awarded France’s Alstom a contract to increase the capacity of the Innovia automated people mover at Terminal 1, including new cars and upgrades to signalling, communications and controls.

    Surbana Jurong is expected to play a leading role in future KAIA expansion plans and is currently providing technical advisory and project management consultancy for more than 100 capital projects for Jedco, valued at over SR6bn ($1.6bn).

    These upgrades are expected to boost KAIA’s annual capacity in line with Saudi Arabia’s Vision 2030 and National Aviation Strategy, enhancing the experience for domestic travellers and millions of Hajj and Umrah pilgrims.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19877992/main.jpg
    Yasir Iqbal
  • Contractor wins $105m Medina university hospital deal

    22 September 2026

     

    Riyadh-based construction firm Al-Mansouria General Contracting Company has been awarded a SR396m ($105.6m) contract to complete the remaining construction works on the Taiba University Hospital project in Medina.

    The contract scope includes structural completion, remaining civil works, mechanical, electrical and plumbing installations, specialised clinical fit-outs and medical gas infrastructure to bring the long-stalled facility into operation.

    Located on King Khalid Road along Medina’s Third Ring Road, the teaching hospital will have a capacity of 563 beds.

    The contract duration is three years, with delivery targeted for late 2029.

    The latest award follows a prolonged procurement cycle that began more than a decade ago as part of a public budget drive to expand Saudi Arabia’s higher education infrastructure.

    The project’s first phase was initially signed in December 2011 with local firm Al-Muhaidib Contracting under a SR500m ($133.3m) contract.

    Groundbreaking for the eight-storey complex took place in July 2013. The project covers a gross floor area of more than 200,000 square metres.

    Progress stalled shortly thereafter due to reported structural delays and the reallocation of public capital budgets across the kingdom’s social infrastructure pipeline.

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

    Nuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.

    Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/19870032/main.jpg
    Yasir Iqbal
  • Oman tenders Thumrait Industrial City infrastructure

    22 September 2026

     

    Oman’s Public Establishment for Industrial Estates (Madayn) has tendered an estimated RO15m ($39m) contract to develop infrastructure for Thumrait Industrial City.

    The tender was issued on 14 September, with bids due by 12 November.

    The scope covers site-wide utilities and services, including an internal road network, stormwater channels and culverts. It also includes installing sewerage and water networks, along with landscaping works.

    In addition, Madayn intends to build plug-and-play industrial units and a facilities building.

    The first phase of the development will cover about 120,000 square metres (sq m).

    Thumrait Industrial City is located in Oman’s Dhofar Governorate and spans an area of more than four million sq m.

    The project location is close to concession blocks, quarry sites and the Najd agricultural areas. It is positioned to attract industrial investments in sectors such as mining and minerals processing (including gypsum and cement), food production, and a range of light and general manufacturing activities.

    In March, Madayn said it is preparing to invest more than RO245m ($637m) to upgrade and expand infrastructure across its industrial cities between 2026 and 2030, as part of efforts to attract new investment and advance economic diversification.

    According to media reports, Madayn chief executive Dawood Bin Salim Al-Hadabi said the programme is part of an expanded, phased plan aligned with Oman Vision 2040 and the authority’s long-term Madayn 2040 strategy.

    The objective is to deepen Oman’s industrial base and spread growth across the sultanate’s governorates.

    Madayn said the pipeline comprises about 90 strategic projects to improve industrial-city infrastructure, extend serviced land and increase the overall ease of doing business for investors.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19866218/main.jpg
    Yasir Iqbal
  • Kuwait halves drilling contractor pool

    22 September 2026

     

    State-owned upstream operator Kuwait Oil Company (KOC) has reduced the number of approved contractors for onshore drilling and shallow-well maintenance from 51 to 24.

    Firms that are no longer qualified include major contractors such as Italy’s Saipem, Oklahoma-based Helmerich & Payne and Houston-based Patterson-UTI Energy.

    The latest list still includes a wide range of Kuwaiti, regional and international companies, according to the latest update on its electronic system, published on 21 September 2026.

    The full list of contractors that are now qualified to participate in tenders is:

    • Burgan Company for Well Drilling, Trading & Maintenance (Kuwait)
    • Kuwait Drilling Company (Kuwait)
    • Sun Drilling Kuwait (Kuwait)
    • TDL Kuwait for Oil Rigs & Natural Gas Extraction Activities, Services and Facilities (Kuwait)
    • United Precision Drilling (Kuwait)
    • Abraj Energy Services (Oman)
    • Adnoc Drilling Company (UAE)
    • Arabian Drilling Company (Saudi Arabia)
    • Anton Oilfield Services (China)
    • China Oilfield Services (China)
    • Egyptian Drilling Company (Egypt)
    • CNPC Bohai Drilling Engineering Company (China)
    • Great Wall Drilling Company (China)
    • John Energy (India)
    • Kerui Oilfield Service (China)
    • KCA Deutag Drilling (Germany)
    • Mohammed Al-Barwani Petroleum Services (Oman)
    • Nabors Drilling International (US)
    • National Drilling & Services Company (Oman)
    • Sea & Land Drilling Contractors (Oman)
    • Sinopec International Petroleum Service Corporation (China)
    • Karamay Jianye Energy (China)
    • Modern Drilling Company (Egypt)
    • Grey Wolf Drilling International (US)

    An earlier list, which was published on 11 February, included 51 qualified companies.

    The reduction in qualified drilling contractors follows KOC’s notice on 27 April this year, informing existing qualified contractors that they would need to reapply.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19863744/main3435.jpg
    Wil Crisp