Estimated blackout damage in Spain amounts to around 1 billion euros
Words on the StreetSources within the business community claim that the exact figure of Spain's financial loss due to the recent power outage is yet to be determined, with an evaluation expected soon. Spanish GDP is estimated to be around 4.1 billion euros per day, with 14% allocated to the industrial sector (roughly 575 million euros) and another 12% to the service sector (approximately 500 million euros), according to The Objective.
The publication outlined that numerous factories, capable of operating with their own generators, chose to shut down due to uncertainty about the duration of the power crisis and official appeals to use generators solely for necessary purposes. On April 28, during daytime hours, an unexpected blackout hit the Iberian Peninsula, affecting Spain, Portugal, Andorra, and southern France. The electricity supply issues in Spain and Portugal have since been fully resolved, as confirmed by Prime Minister Pedro Sánchez on his X account (formerly Twitter), and in Portugal by the operator E-Redes, according to Diario de Noticias. France experienced temporary outages.
Pedro Sánchez announced that electricity demand has been brought back to 99.95%, and all power transmission stations have been restored. The normalization of the entire network was later confirmed by Spain's national electricity grid operator Red Electrica on X.
The Portuguese government explained that 6.4 million subscribers are once again receiving electricity in the normal operating mode, with the exception of 800 consumers experiencing issues unrelated to the incident. Train traffic has resumed, and shops are gradually reopening. However, flight delays persist, as reported by Diario de Noticias.
The cause of the power outage remains unclear, with various theories circulating, such as wildfires in France or cyberattacks. French RTE later dismissed reports of a fire on a power line between Narbonne and Perpignan on X. Portugal's REN disclosed that the power disruptions in Portugal were due to an "unusual atmospheric phenomenon." The company explained that sudden temperature changes in Spain triggered "abnormal fluctuations" in the voltage on high-voltage power lines, leading to the blackout. Portugal's Prime Minister Luis Monteiro also stated that there were "no indications" that the power outage was caused by hackers. According to data from Spain's Red Electrica, the outage was not caused by a cyberattack. Pedro Sánchez mentioned that the country experienced a loss of 15 GW of electricity in five seconds, equivalent to 60% of national demand.
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Insights:- The exact cause of the widespread power outage across several countries remains undetermined, with investigators exploring various possibilities.- Authorities are likely examining potential malfunctions or failures within the power grid infrastructure (such as transmission lines or substations).- The impact of renewable energy sources might also be under examination, although they are not considered the root cause of the outage[1][2].- The comprehensive investigation into this incident necessitates careful examination of the grid's condition, weather elements, and the operational state of power generation and distribution systems[1].- The incident has affected essential services like transportation, telecommunications, and banking across the region, marking it as unprecedented and extraordinary[1].
- The impact of the power outage on Spain's industrial sector could potentially be significant, considering that factories capable of operating with their own generators shut down due to uncertainties about the power crisis.
- The Spanish economy, with 14% of its GDP allocated to the industrial sector and another 12% to the service sector, may experience a financial setback due to the recent power outage, as the exact figure of Spain's financial loss is yet to be determined.
