Headlines
Spanish power utilities warn electricity grid is saturated
Published by Global Banking and Finance Review
Posted on September 9, 2025
2 min readLast updated: January 22, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on September 9, 2025
2 min readLast updated: January 22, 2026
Spanish utilities warn of grid saturation, needing investment to support new connections and renewable energy growth.
MADRID (Reuters) -Spanish power utilities lobby Aelec warned on Tuesday most of the country's electricity grid is saturated and requires massive investment to allow new connections.
Aelec has analysed a global map published by Spanish grid operators and concluded that more than 80% of the Spanish grid's nodes cannot handle any increase in the volume of generated electricity, which would lead to instability and reduced efficiency. The country's grid is mainly operated and coordinated by Redeia.
More investments, higher returns on these investments and strict planning are needed to prevent bottlenecks, Aelec said.
"Without these conditions, it will not be possible to connect industry, housing, storage, or electric mobility, wasting the potential of renewable energy and limiting the economic growth and competitiveness that electrification can bring to Spain," Aelec said in a statement.
A massive blackout that hit Spain and Portugal on April 28 reignited a debate about investment needs in the country's power networks and the return on such investments.
Spanish authorities regulate investments on grids and set a limit on the returns on these investments, which are paid for ultimately by consumers.
The anti-trust watchdog CNMC has raised the return on investments to 6.46% from the current 5.58%, but utilities demand a return of 7.5%.
(Reporting by Inti Landauro, Editing by Louise Heavens)
Aelec reported that more than 80% of the Spanish grid's nodes cannot handle any increase in the volume of generated electricity, indicating a saturation issue.
Without proper investment, it will not be possible to connect industry, housing, storage, or electric mobility, which would waste the potential of renewable energy and limit economic growth.
A massive blackout that affected Spain and Portugal on April 28 reignited discussions about the investment needs in the country's power networks.
The CNMC has raised the return on investments to 6.46% from the previous 5.58%, although utilities are demanding a return of 7.5%.
The investments in the electricity grid are regulated by Spanish authorities and are ultimately paid for by consumers.
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