You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

June 25, 2025

The European Power Outage: What Happened and Why It Matters for Thailand

On April 28, 2025, a massive power outage swept across the Iberian Peninsula, plunging Portugal, Spain, and parts of southwestern France into darkness for up to ten hours. As Thailand advances its energy transition by increasing renewable integration and regional interconnections, the European blackout serves as a stark reminder of the grid vulnerabilities that still exist.

This article marks the first installment of From Crisis to Clarity, a three-part series analyzing the recent European blackout and its implications for Thailand. In this article, we examine the root causes of the outage in the Iberian Peninsula. The second article will assess the likelihood of a similar event occurring in Thailand, considering the country’s current energy infrastructure and its increasing reliance on renewables. The final article will present key lessons and recommendations that Thailand can adopt to strengthen its energy system and prevent comparable disruptions in the future.

Root Causes of the European Power Outage

At approximately 12:30 p.m. on April 28, 2025, Spain experienced a sudden and severe drop in electricity generation, with output falling from around 27 gigawatts to slightly over 12 gigawatts. While investigations are still ongoing, preliminary reports suggest a cascading failure triggered by a fault in a high-voltage cross-border transmission line. The abrupt and precipitous drop in supply created significant instability in the national grid, which relies on maintaining a constant frequency of 50 hertz to ensure operational balance. The resulting frequency deviation triggered automatic safety systems. As a result, some power plants, including nuclear plants, were disconnected. This also led to the disconnection of the interconnection line between Spain and France via the Pyrenees. Ultimately, these events caused a complete collapse of Spain’s power system for up to ten hours.

Speculation persists about the exact cause of the Iberian blackout. While Spanish authorities have ruled out a cyberattack, one possible contributor is a lack of so-called “grid inertia”—the property of a power grid that enables it to resist changes in frequency, typically provided by the rotating mass of conventional generators. In other words, grid inertia is the grid’s ability to keep the frequency stable. Traditional grids powered by gas and nuclear plants have high inertia, making them more resistant to frequency changes. In contrast, grids with a high share of renewables, such as wind and solar, have low inertia unless specific measures are taken to compensate.

On May 1, 2025, the Association of European Transmission System Operators (ENTSO-E) announced the establishment of a panel of experts tasked with conducting a thorough inquiry into the causes and consequences of the blackout. This panel is expected to deliver a final report within six months of the incident. Interim publications, including event analyses, developing conclusions, and recommendations, are scheduled to be released at the end of each two-month period following the incident, providing updates on the investigation’s progress. Spain and Portugal have been given three months to submit their data, reflecting the complexity and scale of the event.

Takeaways

The recent European blackout demonstrates how quickly low-inertia power systems can spiral out of control when frequency stability is compromised. This scenario is increasingly relevant to Thailand, whose traditionally gas-based, centrally managed grid still benefits from a buffer of rotational inertia but is rapidly integrating renewable energy sources and expanding interconnections with neighboring countries. As Bangkok looks toward a future where renewables may account for more than half of installed capacity, the Iberian lesson highlights that strengthening and enhancing the reliability of the grid are no longer optional.

 

For more on this topic, read the second article in the series: “Could a Similar Outage Happen in Thailand?

RELATED INSIGHTS​ 

January 23, 2025
In 2023, compliance inspections by Vietnam’s Government Inspectorate identified several violations of policies and laws in the management and implementation of planning and investment in renewable energy projects. Since then, many renewable energy enterprises and projects have encountered significant operational challenges. In December 2024, the Ministry of Industry and Trade (MOIT) issued two reports, Report 321/BC-BCT and Report 345/BC-BCT, to implement the 2023 Inspection Conclusion of the Government Inspectorate and address obstacles faced by renewable energy enterprises, Investors in renewable energy projects in Vietnam should carefully consider the potential impacts of proposed solutions in these reports. The reports re-emphasize the types of violations related to renewable energy projects identified in the Inspection Conclusion, with a significant expansion in the number of affected projects. Key violations include: (i) misapplication of FIT (feed-in tariff) incentives; (ii) recognition of COD (commercial operation date) and receipt of FIT prices without written approval of construction acceptance; (iii) overlap with mineral planning, irrigation planning, national defense land use, or other restricted land uses; (iv) incomplete land procedures and documentation; and (v) installation of rooftop solar on agricultural and forestry land used for farming and aquaculture models. Further, these reports mention the government’s solutions to resolve difficulties for renewable energy projects, which include: Allowing additional planning where projects do not violate national security. Allowing rectification of projects’ violations in land and construction process as per law. For projects violating planning on minerals, irrigation, or defense, socio-economic efficiency will be assessed for adjustments or integration. Adjusting electricity prices and recovering incorrect FIT prices for projects not meeting conditions. Requiring rooftop solar projects on non-farming land to comply with regulations or, if land violations occur, FIT prices will be revoked, and electricity prices must be redetermined and recovered. For items (iv) and (v), the authority will issue regulations
January 14, 2025
Thailand’s Department of Industrial Works (DIW) has issued a new regulation (Ministerial Regulation Re: Designation of Type, Kind, and Size of Factories (No. 3) B.E. 2567 (2024)), which removes the factory license requirement for electricity generation from solar energy installations on rooftops, roof decks, or any part of a building used for residential or other purposes, regardless of capacity. The new rules took effect on December 28, 2024. Under the previous regulations, solar rooftop installations had to seek approval from the DIW if their capacity exceeded 1,000 kW (1 MW), which added time and administrative costs when adopting renewable energy solutions. Benefits and Further Compliance The updated regulation benefits industrial operators by facilitating faster installation times and lower costs, as solar rooftops can now be installed without the need for prior approval of a factory license from the DIW. Operators can now more easily contribute to environmental sustainability and carbon reduction efforts. Despite the lifting of the factory licensing requirement, other compliance obligations, such as an energy business license (or exemption from an energy business license), a controlled energy production license, and a construction permit, may still apply. Reason for the Change Removing the classification of rooftop or building-installed solar power plants as factories aligns with Thailand’s renewable energy goals and reduces regulatory burdens for industrial operators. Additionally, it supports the achievement of energy policies aligned with the UN’s Sustainable Development Goals and Thailand’s international commitments to reduce greenhouse gas emissions through the participation of all sectors. For further details on how this change affects business operations or to explore strategies for renewable energy implementation, please contact Supasit Boonsanong at [email protected], Charuwan Charoonchitsathian at [email protected], or Phareeya Yongpanich at [email protected].
December 4, 2024
Thailand Legal Basics, a valuable primer for foreign investors, explores all aspects of living and doing business in Thailand. Written by specialists at Tilleke & Gibbins in Bangkok, it is the only comprehensive English-language guide to the Thai legal system with a focus on the concerns of foreign business and investment.
August 12, 2024
With the growing prominence of ESG (Environmental, Social, and Governance) factors, businesses in Vietnam are increasingly recognizing their importance in driving global demand, societal impact, and economic value. A comprehensive acknowledgment of ESG-related legal requirements is critical for investors and companies operating in Vietnam to meet stakeholder expectations and ensure compliance. Our guide provides a basic overview of the rapidly evolving ESG landscape in Vietnam, covering a range of key issues for companies doing business in the country: What is ESG, and what does the ESG legal framework look like in Vietnam? Who needs to follow ESG regulations in Vietnam? What are the benefits of ESG compliance? How can enterprises enhance ESG best practices in Vietnam? Please click on the link below to view the full article.