Blog EN

Is €1.6 billion enough to prevent a grid collapse?

How much did the Iberian blackout really cost – and what could have been done with that money?
Author: Dr. Nenad Končar, MSc EE
Date: May 2, 2025

€1.6 billion – the cost of inaction
In April 2025, the Iberian Peninsula experienced a historic power grid collapse. Millions in Spain and Portugal were left without electricity.
According to Spain’s leading business association (CEOE), the damages amounted to at least €1.6 billion – in Spain alone.
Other sources, like RBC Capital, estimate the cost at €2.25 to €4.5 billion, making this the most expensive energy incident in European history.
But the key question is: Could it have been avoided?
And if yes – what could €1.6 billion have achieved?

What could have been done with €1.6 billion?
Grid collapses are rare – but not random. They usually result from:

  • Frequency imbalance,
  • Technical limits of renewables in grid support,
  • Lack of inertia and reactive power,
  • Absence of local reserves at the right time and place.

With €1.6 billion, we could have built:

Battery Strategy Capacity Estimated Cost (€) Coverage
Regional battery hubs (10x) 50 MWh x 10 ~€150 million Cities with >200,000 residents
National grid stabilization 500 MWh ~€600–750 million Full frequency and voltage support
Distributed black-start units 100 locations ~€300 million Restart capability across Iberia
Surplus for upgrades and control ~€400–500 million Battery replacement, EMS, control systems

Total cost: ~€1.5 billion – less than a single collapse.

Not just protection – but a return on investment
Battery systems don’t just protect – they:

  • Participate in frequency containment reserves (FCR),
  • Reduce solar and wind curtailment,
  • Enable peak shaving and price arbitrage,
  • Provide black-start capabilities,
  • Lower reliance on gas backup.
    ROI: 4–7 years, depending on market conditions.

How did we get here? A gap in EU grid strategy
The EU plans to invest €584 billion in grid upgrades by 2030 (European Commission).

Yet the Iberian incident shows:

  • Software alone isn’t enough,
  • Interconnection can’t solve local instability,
  • Renewables need fast, local battery support to be reliable.

Spain and Portugal are energy leaders – but even the most advanced grids are vulnerable without proper battery deployment.

Adriadiesel’s solution: Modular, fast, scalable
Adriadiesel is developing containerized battery systems using second-life EV batteries:

  • 1.5 MWh per container, scalable from local to national level,
  • Built-in frequency and voltage support,
  • Compatible with solar, wind, and grid systems,
  • Managed by advanced EMS for safety and degradation tracking.

These systems could have mitigated or entirely prevented the Iberian collapse – and they are available today.

Conclusion: Pay now – or pay more later
€1.6 billion can either be written off as a loss, or invested to ensure it never happens again.
The technology exists.
The economics work.
All that’s missing is a strategy shift – from reactive to resilient.

Contact us.
If you're a grid operator, utility, regulator, or investor – Adriadiesel is ready to partner.
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

The connecting piece marked with code number K 81262 is designed to join and stabilize support element K 81260 in the structural framework of the ZV40/48 diesel engine. It plays a vital role in distributing mechanical loads and maintaining the overall rigidity of the support assembly. Built for strength and precision, this connector ensures that the engine components remain aligned and properly supported during vibration and heavy-duty operation. Its role may be small in appearance, but it is essential for the engine’s long-term operational stability and safety.

The weld-on piece identified by code number K 81183 is an essential fabrication component used in assembling or repairing the exhaust piping of the ZV40/48 diesel engine. Designed for strong, leak-proof connections, this part is welded directly onto exhaust system sections to ensure durability and optimal flow of exhaust gases. Its robust construction withstands high temperatures and corrosive gases, making it ideal for marine and industrial engine environments. By enabling precise customization of the exhaust path, it supports both efficiency and compliance with emissions standards.

The expansion bolt with code number K 34127 is a specialized fastener used in securing the upper part of the piston in the Adriadiesel/Jugoturbina/Zgoda/Sulzer ZV40/48 diesel engine. Designed to endure high thermal loads, this bolt compensates for expansion and contraction during engine operation, maintaining consistent tension and alignment. Its ability to flex slightly under heat ensures structural integrity and prevents stress fractures in the piston assembly. This precision-engineered bolt plays a critical role in extending piston life and ensuring reliable engine performance under extreme conditions.

Page 40 of 209