Portugal's Electricity Independence: How the Blackout Led to Cheaper Power

No Electricity Trade with Spain Since Blackout

Despite the interconnection being operational, Portugal and Spain have opted not to engage in electricity trade since the recent blackout. Remarkably, Portugal managed to secure cheaper electricity the following day.

Caution in Energy Management

The caution in managing the energy grids is particularly evident from the Spanish side, where the cause of the blackout — deemed the worst in Europe in 20 years — is still under investigation. The Spanish grid operator has adopted a more conservative approach, heavily relying on natural gas plants despite the availability of renewable energy.

Price Disparity

On the day following the blackout, the average price of electricity in Portugal was €20.54 per MWh, significantly lower than Spain's €31.38 per MWh. This price difference highlights the effectiveness of Portugal's energy strategy, which utilized a robust mix of hydroelectric, wind, and to a lesser extent, solar energy. Renewable sources accounted for 77% of the national production and consumption, with no imports.

Current Market Situation

As of today, electricity in Portugal traded on the market has become more expensive than in Spain, costing €18.85 per MWh compared to €13.29 per MWh. This situation has reignited discussions about the need for electricity imports from Spain, not out of necessity but due to cost-effectiveness, especially considering the full reservoirs in Portugal during this period.