Following the Iberian blackout, AELEC demands capacity markets, regulatory stability, and more robust networks to avoid further crises

The recent Iberian blackout revealed a critical reality: the energy transition is not just an environmental goal, but also a technical, strategic and regulatory challenge.

This was the core message delivered by Cristina Caballero, Senior Regulatory Affairs Officer at the Spanish Electricity Industry Association (AELEC), during the Storage, Renewable, and EV Integration Forum, organized by Strategic Energy Europe and Mobility Portal Europe.

"Operating a power system with high renewable penetration presents significant challenges, such as managing variability and maintaining supply-demand balance," Caballero stated.

She emphasized the need for a comprehensive set of structural measures to ensure the robustness, safety, and competitiveness of the system.

Regarding the causes of the blackout, she stressed that "a detailed analysis of the event is essential, along with collaboration among all stakeholders to identify root causes and develop mechanisms to prevent recurrence."

RELIVE THE STORAGE, RENEWABLE, AND EV INTEGRATION FORUM:

The second major event of the year from Strategic Energy Corp was a two-part virtual session, co-organized with Mobility Portal Europe and Strategic Energy Europe.

Strategic Energy Corp, in partnership with the Future Energy Summit (FES), is behind some of the sector"s most relevant events, as FES positions itself as the leading platform for renewable energy dialogue in Spanish-speaking countries.

The third edition of FES Iberia 2025 will take place on June 24, at the Colegio de Caminos (Betancourt Auditorium, C. de Almagro, 42, Chamberí, Madrid). (Watch the previous edition here).

To confront this triple challenge, AELEC proposes large-scale adaptation of electricity demand planning, aligning renewable generation deployment with end-use electrification.

This requires cross-sector planning that considers both current and future infrastructure needs.

During the virtual forum, Caballero emphasized the need to continue investing in the efficient use of existing networks, while also enhancing their resilience against extreme weather events and operational imbalances. "Infrastructure must be ready for an increasingly flexible, decentralized and variable operation," she noted.

She also called for investment in critical technologies for real-time system operation, including voltage and frequency control, congestion management and fast-response services.

These tools help stabilize the grid and ensure secure electricity supply amid sharp fluctuations in production or consumption.

SElectric system rotation mechanisms must be updated based on criteria suited to high renewable penetration," Caballero explained.

She added that operational and monitoring schemes must also be redefined, incorporating digital tools that enable proactive and dynamic responses to risk events.

On the generation side, AELEC advocates for the implementation of capacity markets that not only reward energy production, but also the availability of system-support technologies such as combined-cycle gas plants and energy storage.

SIt is essential to compensate technologies for their capacity to stabilize the grid, even when they are not actively generating," Caballero stated.

This approach would ensure technical reserves are available during demand peaks or unforeseen outages, while providing clear investment signals for system reliability.

She also highlighted the strategic role of energy storage.

SStorage contributes to voltage regulation and maximizes renewable energy use, enabling the integration of variable technologies into a stable grid," she said.

Another key issue raised by AELEC is the need to reinforce Spain"s interconnections with neighboring countries. "Electricity transfer between countries is essential to balance supply and demand and provide backup in emergency situations," Caballero stressed.

These interconnections operate in a coordinated manner across the European grid, correcting frequency imbalances in milliseconds by releasing system inertia.

SIn seconds, reserves in the affected country are deployed and Europe activates to restore system balance," she explained.

Spain"s current interconnection rate stands at just 3%, far below the EU"s target of 10% by 2025.

AELEC sees meeting this goal as crucial not only to ensure national system security, but also to strengthen the EU internal electricity market.

SWe should learn from countries that have successfully integrated higher shares of renewable energy," Caballero added.

"They have promoted long-term contracts that bring stability to both producers and consumers, lowering costs and increasing system efficiency.

Looking ahead, Caballero outlined three key priorities for Spain through 2030: renewable expansion, regulatory stability, and robust electrical networks.

"We are moving into a decentralized environment with emerging actors," she explained.

SIt"s becoming more complex, with external service providers, prosumers, EVs, distributed generation, and demand-side services.

This new ecosystem demands the deployment of resources and new management models.

"We are moving from one-directional flows from centralized high-voltage generation to consumption, toward multi-directional energy flows.

We therefore need stronger, more digitalized grids to face climate risks and meet growing system demands," she added.

She also emphasized the need for a stable regulatory framework that recognizes investments and introduces incentives for digitalization.

"This will allow Spain to generate tangible benefits for consumers, the economy, employment and the environment, she said.

SWe"re in a global race to attract capital, and regulatory certainty is key.

Investors need financing, and grid operators (TSOs) need a financial return that ensures profitability of investments.

That"s the only way to fund the upgrades the system requires," Caballero concluded.