Finance
Spain and Ireland Are Set to Assess Viability of Undersea Power Link
Published by Global Banking & Finance Review®
Posted on April 21, 2026
2 min readLast updated: April 21, 2026
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Quick Summary
Spain and Ireland are signing a preliminary pact to explore an undersea power link, enhancing renewable energy exchange and addressing Spain’s low interconnection with Europe amid EU decarbonisation and security goals.
Spain and Ireland to Study Feasibility of New Undersea Electric Interconnector
Preliminary Agreement and Context
By Pietro Lombardi
Agreement Signing and Purpose
MADRID, April 21 (Reuters) - Spain and Ireland's energy ministers will sign a preliminary agreement on Thursday on assessing the viability of an undersea power link between the two countries, the Irish government said on Tuesday.
Benefits of the Connection
A connection would allow the exchange of power between the countries that have significantly increased renewable energy production and would be in line with Europe's broader focus on security of supply and decarbonisation.
Spain's Energy Connectivity Challenges
For Spain, its lack of power connections with the rest of Europe has long been a source of frustration.
EU Interconnection Targets
Under EU targets, by 2030 each European country should have enough power connections to allow it to import the equivalent of at least 15% of its electricity production. The capacity of Spain's interconnections so far is less than the equivalent of 3% of its production.
Urgency Following Recent Events
Madrid has long pushed to increase its power links with the rest of continental Europe, and an unprecedented blackout last year added urgency.
Project Feasibility and Related Developments
The memorandum of understanding establishes a general framework for analysing the project's feasibility and economics, according to a draft seen by Reuters.
Other Interconnector Projects
The Irish and French electricity grid operators are already building a power connection between the two countries. Expected to start operations in 2028, it will be the first interconnector between Ireland and continental Europe.
(Reporting by Pietro Lombardi, additional reporting by Padraic Halpin, editing by Aislinn Laing and Barbara Lewis)
Key Takeaways
- •Spain’s interconnection capacity is under 3% of its generation—well below the EU’s 15% 2030 target—highlighting its ongoing grid isolation and urgency to improve cross-border links (europarl.europa.eu).
- •The planned undersea power link between Spain and Ireland would complement the Celtic Interconnector (Ireland–France), strengthening Europe’s renewable energy exchange and resilience (en.wikipedia.org).
- •Prior projects like the Bay of Biscay cable (Spain–France) secured €1.6 billion from the EIB to boost interconnection from 2.8 GW to 5 GW, indicating growing momentum for Iberia’s grid integration (investing.com).
References
Frequently Asked Questions about Spain and Ireland are set to assess viability of undersea power link
1What is the aim of the Spain-Ireland undersea power link?
The aim is to assess the viability of an undersea power connection to exchange electricity and support renewable energy integration.
2Why does Spain want more power connections with Europe?
Spain's current power interconnections are below EU targets, limiting import and export capacity and causing frustration on energy integration.
3What EU targets apply to European power interconnections?
By 2030, each European country should have power connections to import at least 15% of its electricity production.
4When is the Ireland-France power interconnector expected to operate?
The Ireland-France electricity interconnector is expected to start operations in 2028.
5What does the memorandum of understanding between Spain and Ireland establish?
It establishes a framework for analysing the feasibility and economics of the undersea power link project.
