Energy companies have blamed Redeia for the blackout that occurred last April in Portugal and Spain—the largest in Europe in over two decades—while Redeia, in which the Spanish state holds a 20% stake, has in turn blamed them. Senior executives at Redeia have stated that the company complied with all procedures and regulations.
Following the blackout, multiple investigations have been launched, including one by the Spanish government, which concluded that both Redeia and the power generators were responsible.
Red Eléctrica manages a transmission network of more than 46,000 kilometers, while electricity companies, including Iberdrola and Endesa, control and invest in smaller local distribution networks that deliver electricity to end customers.
INVESTMENT FOCUSED ON THE SPANISH GRID
On Thursday, Redeia announced it would invest approximately 6 billion euros in the Spanish electricity grid, with around 500 million euros earmarked for other businesses, such as its international operations in Latin America and its technology and fiber optic ventures.
The company said on Thursday that it had not set aside provisions for potential claims related to the blackout, considering it unlikely that it would be required to make payments related to the supply interruption, although ongoing investigations could change this in the future.
After the blackout, the grid operator increased the use of stable generation sources such as gas-fired plants. These are more expensive and emit carbon dioxide, but they can balance the grid more effectively than more intermittent renewable sources.
As the share of electricity produced by wind and solar fell from 56.8% in 2024 to 55.5% last year, the average price of electricity on Spain's free market rose by about 9% to €83.45 per megawatt hour, according to Redeia data.
Last year, net profit increased by around 37% to €505.6 million, according to the same source.
(1 dollar = 0.8477 euros)
(Reporting by Pietro Lombardi; editing by David Latona and Barbara Lewis; Spanish edition by Jorge Ollero Castela)
