Mitigating the Grid Collapse on the Iberian Peninsula – and Why This Must Become Standard

Author: Dr. Nenad Končar, M.Sc.Eng.
Date: May 2, 2025

A system collapse — but not for everyone
When the Iberian power grid collapsed in seconds on April 28, 2025, life came to a standstill. But not everywhere.
According to AENA, the Spanish airport authority, backup systems enabled terminals to keep operating even amid the worst energy crisis in the region’s history.
And they weren’t alone:

• hospitals,
• telecom hubs,
• data centers

— in many cases remained operational thanks to local microgrids and battery systems, supported by emergency diesel generators.

What saved us — and why isn't it everywhere?
Batteries and microgrids are no longer “extras” — they are core security infrastructure for a world where:

• outages last hours,
• centralized systems have limits,
• and electricity is the digital “oxygen” of every service.
  Systems with local control, energy storage, and islanding capability kept working.
  Those without — went dark.

How much would it actually cost to avoid darkness next time?
For less than 10% of the damage caused by the collapse, we could deploy:

• microgrids around all critical points (hospitals, stations, airports),
• local battery systems for balancing and black-start,
• smart infrastructure for auto-islanding and recovery.

Comparison:
Damage in Spain alone: €1.6 billion
Cost to install 1,000 battery-backed microgrids: < €1 billion

From reaction to resilience
Instead of reacting after the fact, it’s time for a new logic:

• The grid is no longer one system — it is a network of microgrids.
• Every city, port, and major service must have its own resilience.
• This means batteries, inverters, smart controls, and local automation.

Adriadiesel offers the solution
Our containerized systems:

• use second-life EV batteries,
• deliver power in milliseconds,
• function as part of a microgrid or standalone units,
• enable black-start in isolation.
  What was once a luxury is now basic security.

Conclusion: Every community needs a Plan B — and that’s a microgrid
The Iberian collapse showed who was prepared and who wasn’t.
Next time, that difference may go beyond interrupted services — it may mean lives, health, and national security.

Contact
Adriadiesel is ready to help plan, equip, and implement battery-based microgrids for:

• cities, municipalities, and regions,
• airports and seaports,
• hospitals and data centers.
  Contact: This email address is being protected from spambots. You need JavaScript enabled to view it.

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:

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.