A different kind of firm
parallax background

Grid lock

Last year's Iberian blackout had nothing to do with renewables

March 23, 2026

5 min read

March 23, 2026

5 min read

Photo: Dreamstime.

So renewables, the European Network of Transmission System Operators for Electricity (ENTSO-E) confirmed last week, were not to blame for the electricity blackout in the Iberian peninsula last April. The blackout affected large parts of Spain and Portugal, and briefly affected southwestern France. At one stage on April 28, 2025, as many as 60 million people were without electricity.

Knee-jerk reaction to the blackout suggested that Spain’s heavy reliance on renewable energy for what was Europe’s most severe blackout incident in over 20 years, and the first ever of its kind. Portugal relies on renewables (including hydropower) for more than 80 per cent of electricity generation, while more than half of all Spain’s electricity is derived from renewable sources.

ENTSO-E’s report, prepared by a 49-member panel of experts, concludes that the blackout resulted from a combination of many interacting factors, including oscillations, gaps in voltage and reactive power control, differences in voltage regulation practices, rapid output reductions and generator disconnections in Spain, and uneven stabilisation capabilities. These factors led to fast voltage increases and cascading generation disconnections, resulting in the blackout in continental Spain and Portugal.

The report’s recommendations emphasise that renewable energy remains central to both energy security and climate objectives, but needs to be supported with a modern, resilient infrastructure.

Indeed, it can be argued that the report, as well as the current energy crisis and the sharp rise in oil and gas prices, only improve the case for expanding domestic renewable energy. However, Spain, and Europe more broadly, face limitations under the existing grid conditions. This is why urgent investment in grid modernisation and expansion is not optional, but essential.

“This report confirms that the main cause of the Iberian blackout was grid failure, not renewables. Right now, Spanish customers are among the least exposed to energy price surges in Europe thanks to sustained investment in renewables in recent years,” says Tara Connolly, energy campaigner at Beyond Fossil Fuels.

“Solar and wind remain the best hedge against unstable global gas markets, while strengthening energy security. Governments in Europe must accelerate investments in clean technologies to update our aging power grids to be more resilient, modern and flexible, and avoid repeating the same mistakes again.”

Wired wrong

The impulse to blame wind and solar for power failures is not new, and it surfaces with tiresome reliability whenever a grid wobbles. What made the Iberian case distinctive, according to the ENTSO-E panel, was that it was the first blackout ever caused not by too little power, but by too much voltage. At 12:33 on April 28, a surge of overvoltage in southern Spain cascaded through the system in under 30 seconds. Fossil, nuclear and renewable plants alike disconnected automatically to protect their equipment. The grid lost synchronisation with France and Morocco. Voltage dropped to zero.

Renewables bore a specific technical vulnerability, and the report was candid about it. Solar and wind installations using converter-based technology were, at the time, not legally permitted to contribute to voltage control. They could not help stabilise the very instability that triggered their disconnection. Spain updated its operational procedures in June 2025 to fix this.

The full implication is almost the reverse of what the critics claimed: the problem was a regulatory framework that had not caught up with the generation mix it was meant to govern.

Back on the gas

The months after the blackout offered a sharper demonstration of what fossil fuel dependence actually costs. Nervous grid operators responded by mandating more gas-fired generation to stabilise the system. The cost of grid balancing services doubled in May 2025 compared with the previous year. Gas ended up accounting for 57 per cent of the final electricity price that month, up from an average of 14 per cent in the year before the blackout. Renewable curtailment tripled, from 1.8 per cent to 7.2 per cent between May and July, as grid operators opted for thermal backup over cheap, available clean power.

Spain had spent years building exactly the generation fleet that breaks the link between gas markets and electricity prices. The blackout snapped that link temporarily back into place. The scale of what had been achieved is worth stating plainly: since 2019, the country doubled its wind and solar capacity, and its wholesale electricity price was 32 per cent below the EU average in the first half of 2025. New solar and wind capacity added in the past five years avoided some 26 billion cubic metres of gas imports, saving around 13.5 billion euros. That is almost five times what Spain invested in its transmission grid over the same period. The imbalance is the real story.

Europe’s electricity grids were designed for large, centralised thermal plants. They were not built for dispersed, variable renewable sources without significant investment in storage, interconnection, and voltage management. Spain, despite generating more than 55 per cent of its electricity from renewables in 2025, has only 120 megawatts of battery storage, ranking 13th in Europe. Denmark, for comparison, manages a 69 per cent renewable share without comparable grid instability.

Gas prices rose 55 per cent in a single day following the escalation of conflict in the Middle East, and have continued climbing. Countries with fossil-heavy grids are most exposed. The ENTSO-E report’s recommendations point toward infrastructure, not ideology: stronger operational practices, improved monitoring, updated regulatory frameworks.

The European Commission’s Grid Package, announced last year, provides a framework for accelerating such investment. Frameworks and actual capital, however, are different things. The blackout was a grid failure. Treating it as a renewables failure risks the worst possible outcome: a retreat from the only energy strategy that durably reduces dependence on volatile global fuel markets.

Photo: Dreamstime.

Reinvantage Insight

Reinvantage Insight

The byline Reinvantage Insight is used to denote articles to which several members of the Reinvantage insight and analysis team may have contributed.

Share

Case study: Global technology company

1. The Client

A global technology company operating across EMEA, with a regional HQ in Istanbul. The company manages 20+ markets, handling everything from brand campaigns to strategic partnerships.

Role we worked with: The EMEA Head of Marketing (supported by two regional managers).

2. The Challenge

Despite strong products and a respected global brand, the regional team was struggling with:

  • Misaligned strategy across markets → campaigns executed with inconsistent narratives.
  • Slowed growth → lead generation plateaued despite increasing spend.
  • Internal friction → marketing, sales, and product teams disagreed on KPIs and priorities.

Traditional fixes (more meetings, more reporting) only created more noise.

3. The Sprint

We ran a 10-day Remote Reinvention Sprint with the regional HQ team.

  • Day 1–3: Intake → Reviewed decks, campaign data, and plans.
  • Day 4: Sprint Session (90 mins) → Breakthroughs:
    • Sales and marketing had different definitions of “qualified lead.”
    • 40% of spend was going into low-potential markets.
    • The team assumed the problem was lack of budget, but it was actually lack of alignment.
  • Day 5–10: Synthesis → Insights distilled into a Clarity Brief + Insight Canvas.
4. The Breakthrough

The Sprint uncovered that the issue wasn’t budget, but fragmentation.
Three sharp insights unlocked a way forward:

  1. Unified KPIs bridging marketing + sales.
  2. Market prioritisation → shifting budget to 5 high-potential markets.
  3. Simplified narrative → one EMEA core story, locally adaptable.
By just realigning resources and focus, the client could unlock an estimated £250,000 in efficiency gains within the next 12 months — far exceeding the Sprint’s value guarantee. The path to higher returns was already inside the business, hidden by misalignment.
5. From Sprint to Action (4 Pillars Applied)

With clarity secured, Reinvantage didn’t suggest “more projects.”

Instead, we used the Sprint findings to create laser-focused next steps — drawing only from the areas that would deliver the most impact:

  • Readiness → Alignment workshops for sales + marketing teams. New playbooks clarified “qualified lead” definitions and reduced internal disputes.
  • Foresight → A market-opportunity scan identified which 5 countries would deliver the highest ROI, removing the guesswork from allocation.
  • Growth → Guided the reallocation of €2M budget and designed a phased rollout strategy that protected risk while maximising return.
  • Positioning → Built a messaging framework balancing global consistency with local nuance, ensuring campaigns spoke with one clear voice.

Because the Sprint had stripped away noise, these actions weren’t generic consulting ideas — they were directly tied to the breakthroughs.

6. The Results
  • +28% increase in qualified leads across the region.
  • 30% faster campaign rollout due to streamlined approvals.
  • Budget efficiency gains → €2M redirected from low-return to high-potential markets.
  • Internal cohesion → marketing + sales now use a single shared dashboard.
The client came in believing they needed more budget.
The Sprint revealed that what they really needed was clarity and alignment.

With that clarity, the four pillars became not theory, but practical tools to deliver measurable impact.

The Sprint guaranteed at least £20,000 in value — but in this case, it helped unlock more than 10x that within six months.

Case study: Regional VC fund & accelerator

1. The Client

A regional venture capital fund and accelerator focused on early-stage tech start-ups in the Baltics and Central Europe.

The fund had raised a new round and was under pressure to deliver stronger returns while also building its reputation as the go-to platform for founders.

Role we worked with: Managing Partner, supported by the Head of Portfolio Development.

2. The Challenge

Despite a promising portfolio, results were uneven.

Key issues:

  • Scattered portfolio support → no consistent playbook for start-ups, every partner did things differently.
  • Weak differentiation → founders and co-investors saw the fund as “one of many” in the region.
  • Stretched team → too many small bets, not enough clarity on which companies to double down on.

The leadership team knew something was off, but disagreed on whether the issue was pipeline quality, market conditions, or internal capacity.

3. The Sprint

We ran a 10-day Remote Reinvention Sprint with the partners and portfolio team.

  • Day 1–3: Intake → Reviewed pitch decks, pipeline funnel data, and start-up performance reports.
  • Day 4: Sprint Session (90 mins) → Breakthroughs:
    • No shared definition of a “high-potential founder.”
    • Support resources were spread too thin across the portfolio.
    • The fund’s positioning was more reactive than proactive — it didn’t own a distinctive narrative in the market.
  • Day 5–10: Synthesis → Insights consolidated into a Clarity Brief + Insight Canvas.
4. The Breakthrough

The Sprint revealed that the challenge wasn’t pipeline quality — it was lack of focus and positioning.

Three core insights provided the turning point:

  1. Portfolio Prioritisation Framework → defined clear criteria for where to double down.
  2. Founder Success Playbook → standardised support model for portfolio companies.
  3. Differentiated Narrative → repositioned the fund as “the accelerator of reinvention-ready founders.”
These shifts alone gave the fund a path to add an estimated £2M+ in portfolio value over the following 18 months, by concentrating capital and resources where they could move the needle most.
5. From Sprint to Action (4 Pillars Applied)

With clarity from the Sprint, Reinvantage created a tailored support plan:

  • Readiness → Coached partners on using the new prioritisation framework and trained the team on deploying the Founder Success Playbook.
  • Foresight → Ran scenario analysis on regional tech trends, helping the fund anticipate where capital would flow next.
  • Growth → Guided resource reallocation across the portfolio and supported new co-investor pitches for top-performing start-ups.
  • Positioning → Crafted a sharper brand story for the fund, positioning it as the reinvention partner for globally minded founders.
6. The Results
  • 10 portfolio companies onboarded to the new Playbook → greater consistency of support.
  • Raised follow-on capital for 3 top start-ups with the new prioritisation framework.
  • +26% increase in inbound deal flow from founders citing the fund’s new positioning.
  • Stronger internal cohesion → partners aligned on where to focus resources.
The client thought the problem was pipeline quality.
The Sprint showed it was actually lack of clarity and focus inside the firm.

By applying the four pillars, Reinvantage helped turn scattered effort into concentrated value creation.

The Sprint guaranteed at least £20,000 in value; here it set the stage for multi-million-pound upside in portfolio growth.

Case study: International impact Organisation

1. The Client

A large international impact organisation focused on entrepreneurship and economic empowerment.
The organisation runs multi-country programmes across Eastern Europe and Central Asia, often in partnership with global donors and corporate sponsors.

Role we worked with: Senior Programme Director, responsible for regional coordination.

2. The Challenge

The organisation had launched a flagship regional initiative supporting women entrepreneurs, but the programme was underperforming.

Key issues:

  • Fragmented delivery → each country office interpreted the programme differently.
  • Donor frustration → reporting lacked consistency and clear impact metrics.
  • Lost momentum → staff energy was spent on administration rather than scaling success stories.

Traditional programme reviews had produced long reports, but no real alignment or action.

3. The Sprint

We ran a 10-day Remote Reinvention Sprint with the regional leadership team and representatives from two country offices.

  • Day 1–3: Intake → Reviewed donor reports, programme KPIs, and field feedback.
  • Day 4: Sprint Session (90 mins) → Breakthroughs:
    • Donors cared about quantifiable outcomes, but reporting focused on stories.
    • Staff were duplicating efforts across countries, wasting time and resources.
    • The initiative lacked a clear theory of change — everyone described its purpose differently.
  • Day 5–10: Synthesis → Insights distilled into a Clarity Brief + Insight Canvas.
4. The Breakthrough

The Sprint revealed that the issue wasn’t donor pressure or programme design — it was a lack of shared framework and alignment.

Three critical insights reshaped the path forward:

  1. One Unified Theory of Change → agreed narrative for why the programme exists.
  2. Core Impact Metrics → clear, comparable KPIs across all countries.
  3. Smart Resource Sharing → digital hub to stop duplication and accelerate knowledge flow.
By eliminating duplicated reporting and clarifying what success looks like, the client saw they could save the equivalent of £100,000 in staff time annually — while also unlocking stronger donor confidence and follow-on funding opportunities.
5. From Sprint to Action (4 Pillars Applied)

Armed with Sprint clarity, Reinvantage proposed a laser-focused support plan:

  • Readiness → Trained programme leads on using the new metrics and integrated them into existing workflows.
  • Foresight → Analysed donor trends and expectations, aligning the initiative with the next funding cycle.
  • Growth → Developed a funding case based on the new unified theory of change, securing higher renewal chances.
  • Positioning → Crafted a regional success narrative and storytelling toolkit, helping them showcase results consistently across markets.
6. The Results
  • 30% less time spent on reporting → freed capacity for programme delivery.
  • Donor satisfaction improved → positive feedback on the clarity of impact evidence.
  • Secured new funding commitment → one major donor increased their contribution by 20%.
  • Stronger internal morale → staff felt they were working with clarity, not chaos.
The client thought it needed better donor management.
The Sprint revealed it needed a shared foundation across its teams.

By anchoring on the four pillars, Reinvantage turned alignment into efficiency gains and fresh funding opportunities.

The Sprint guaranteed at least £20,000 in value; here it unlocked both six-figure savings and future-proofed funding.

Case study: National digital development agency

1. The Client

A national digital development agency tasked with driving the government’s digital transformation agenda, including e-services, citizen portals, and smart city pilots.

Role we worked with: Director of Digital Transformation, supported by IT and service delivery leads from three ministries.

2. The Challenge

The agency had strong political backing but faced hurdles in implementation.

Key issues:

  • Siloed projects → each ministry developed digital tools independently, leading to duplication.
  • Citizen frustration → services were digital in name, but still required multiple logins and offline steps.
  • Funding pressure → international partners demanded clearer impact in the short term.

The agency wanted to accelerate momentum but struggled to get alignment across ministries.

3. The Sprint

We ran a 14-day Immersive Reinvention Sprint with the agency’s leadership and digital focal points from three ministries.

  • Day 1–3: Intake → Reviewed strategy docs, donor reports, and citizen feedback data.
  • Day 4: Immersive Sprint Session (half-day) → Breakthroughs:
    • Each ministry had different definitions of “digital service.”
    • 20% of budget was going into overlapping pilot projects.
    • Citizens’ top frustrations were known — but not prioritised.
  • Day 5–14: Synthesis → Insights consolidated into a Clarity Brief + Insight Canvas.
4. The Breakthrough

The Sprint revealed that the biggest blocker wasn’t lack of funding, but lack of shared priorities.

Three practical insights stood out:

  1. One Definition of Digital Service → agreed across ministries.
  2. Quick-Win Prioritisation → focus on top 3 citizen pain points (ID renewal, business registration, healthcare booking).
  3. Shared Resource Map → pool budgets to eliminate duplication.
These changes alone allowed the agency to unlock £75,000 in immediate savings and deliver 2–3 visible improvements in the next quarter — meeting donor expectations and building citizen trust.
5. From Sprint to Action (4 Pillars Applied)

Based on the Sprint clarity, Reinvantage proposed a modest, targeted package of support:

  • Readiness → Facilitated inter-ministerial workshops to embed the “one digital service” definition.
  • Foresight → Analysed citizen feedback trends to shape the quick-win roadmap.
  • Growth → Supported the reallocation of funds to joint projects, reducing overlap.
  • Positioning → Crafted a communication plan highlighting early digital wins to donors and citizens.
6. The Results
  • 2 pilot services integrated into the central portal (ID renewal + healthcare booking).
  • Budget savings of £75,000 from eliminating overlapping projects.
  • Citizen satisfaction up modestly → call centre complaints on digital services dropped by 12%.
  • Donor confidence improved → short-term impact report received positive feedback.
The client thought it needed more funding and bigger projects.
The Sprint revealed it first needed clarity and alignment.

By applying the four pillars to a targeted scope, Reinvantage helped deliver visible results within a single quarter — proving progress to citizens and donors and laying the groundwork for deeper transformation.

You must be logged in to view this page. Login here.

Bridging the Reinvention Gap: Fill this form and get your preview copy immediately.

Future of IT: Fill this form and get your preview copy immediately.

War for Talent: Fill this form and get your copy immediately.

The Voice of Ukrainian Start-ups: Fill this form and get your copy immediately.

The uncounted engine: Ukraine’s start-up rise. Fill this form and get your copy immediately.

The Investment Promotion Playbook 2025: Fill this form and get your preview copy immediately.

The Reinvention Masterclass for Start-up Founders: Join the private cohort

Beyond Borders: Join the private edition