Blackout in Spanish Peninsular Electrical System the 28th of April 2025
An initial report is out and what do we know?
- There's no mention of the root cause of the problem which is...too much government involvement. Too much government involvement creates too much complexity, not enough competition, too much politicking, not enough market testing, and a single answer for everybody.
- Spain or any country should not have a single grid. That's risky and eliminates the benefits of competition. In a competitive world that would not happen.
- Aspects of this report will be disputed by others.
- There will be politicking over corrective actions. Said another way, the corrective actions will be partly influenced by politicking.
- Spain will still have a single grid with the same operator tomorrow. If this were a competitive market, the grid owner/operator will lose customers and possibly go out of business.
Spain and all countries need more competition and more economic freedom in the electricity sector. "Consumer Regulated Electricity" or CRE is one such idea. CRE policy would allow the creation of new, independent, competitive, and large-scale utilities and grids. These new "CRE Utilities" would be able to move faster and bring forth far more innovation than is possible by the current sector. Moreover, CRE Utilities would provide insights into how an open and competitive electricity market works that could be adopted by the government controlled utilities and grids.
Contact us to learn more about CRE and follow us right here on LinkedIn.
