Europe’s Energy Security: Spanish Blackout, Empty Storage and Baltic Disputes

April 2025 has proven to be a tense month – both figuratively and literally – for Europe’s energy sector. A massive blackout on the Iberian Peninsula has exposed the weaknesses of transmission infrastructure in peripheral countries, while global turmoil over LNG supplies has increased pressure on the European gas market. Against this backdrop, the European Union continues its regulatory order, Poland strengthens its position as a regional gas player, and a new international dispute over the exploitation of natural resources is emerging in the Baltic Sea.

The article summarises the most important events and trends that may define the direction of European energy policy in the coming months.

• Blackout in Spain and Portugal. On April 28th in the afternoon, the largest mass transmission failure in Europe in over 20 years occurred, cutting off power to tens of millions of customers in Spain and Portugal. The Spanish grid collapsed around 12:30, halving power consumption in a few minutes and remaining at only ~50% of demand for eight hours. Portugal immediately felt the "domino effect", and restoring power required starting, among others, gas and hydroelectric power plants in black start mode. Interconnector failures prevented significant support from France, which highlighted the differences in the resilience of peripheral countries' networks compared to those that are strongly synchronized (e.g. Germany) and accelerated the discussion on the need to strengthen cross-border connections.
• LNG trade and global tensions. In response to the US-China tariff war, China has reduced its purchases of US LNG, which has redirected some cargoes towards Europe. In turn, European companies, under pressure from the US administration, have increased their imports of US raw material. This competition for LNG supplies has highlighted both the oversupply caused by higher US production and the growing price competition in the European market.
• Empty storage and EU policy. European gas storage levels remained below the multi-year average after the 2024/25 winter, forcing member states to import more than in recent years. In April, the EU extended the 90% storage requirement to 2027, while also moving the deadline from 1 November to a flexible period from 1 October to 1 December. The persistently low reserves are driving seasonal price volatility and discussions on further harmonisation of storage regulations.
• Projects and regulations in Poland. In April, Orlen began extracting gas from the licensed Grodzewo deposit, which in the long term is to strengthen the independence of raw materials. At the same time, the government adopted the so-called gas revolution project introducing a new transmission fee - an element of a larger strategy of diversifying sources and stabilizing costs. Orlen also declared the beginning of commercial gas supplies to Ukraine, strengthening Poland's regional role as an exporter.
• Discoveries in the Baltic Sea. In mid-April, preliminary research results from the British company Zenith Energy appeared, indicating resources of around 16.5 billion m³ of gas in the Wolin East-1 license. Germany immediately raised an objection, citing ecological risks to the unique ecosystem of the Pomeranian Bay. This dispute exposed tensions in the neighborhood regarding the balance between energy security and environmental protection.

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