Hungary pays neighbours to avoid blackouts: lessons from Spain’s recent energy crisis

Hungary currently leads the world for share of solar energy in its energy mix, as it generated a quarter of its domestic electricity from photovoltaic panels in 2024. However, the recent massive blackout in Spain and Portugal served as a reminder of the challenges involved with high reliance on renewable energy.

Iberian blackout came 12 days after renewable-energy milestone

Just days before the blackout on 28 April, Spain announced that its national electricity grid had on 16 April run entirely on renewable sources – wind, solar and hydroelectric power – meeting the whole electricity demand of the Iberian Peninsula for the first time.

Yet less than a fortnight later, Spain and Portugal experienced their largest ever power failure, losing around 15 GW (almost 60%) of their electricity. Initial investigations indicated that two solar farms in south-west Spain had simultaneously disconnected, triggering the failure.

Hungary, with even greater exposure to solar volatility, faces similar risks. While Spain and Hungary share similar ratios of solar in their energy mixes, of 25% or higher, daily data reveals that the latter country frequently significantly surpasses the former. 

Hungarians celebrated Easter Sunday on 20 April, as the country’s solar generation achieved 123% of electricity demand, compared to Spain’s peak of around 55% before the blackout. The Hungarian figure excludes the country’s approximately 300,000 residential solar installations

Export connections to manage energy imbalances

Hungary’s high solar generation levels often see it exporting surplus energy to neighbouring countries for negative prices: paying them to absorb excess electricity and maintain grid stability. Although Hungary is a net electricity importer, these short-term exports highlight the urgent need for better consumption management and grid technology.

Madrid often rues its poor connection to the French national grid, improvement of which would enhance its energy security. Former Spanish Ecological Transition Minister Teresa Ribera has been vocal on the issue, saying France has for years blocked projects to properly connect the Iberian Peninsula to the European grid, calling the current situation a “disgrace”. During the blackout, Spain and Portugal could not assist other European countries more effectively “because they had a weak interconnection” with them, Ribera added.

The limited interconnection capacity – currently around 3%, far below the EU’s 10% target – has long been a bone of contention. Spain says this bottleneck prevents the efficient export of surplus renewable energy and hampers overall grid stability. Efforts to enhance interconnections, such as the planned Biscay Gulf project, have faced delays and opposition, partly due to concerns from France about competition with its nuclear industry.

Diverse energy mix enhances grid flexibility

Another factor preventing a Spanish-style blackout in Hungary is the country’s diverse and flexible energy mix. Hungary relies heavily on nuclear power, which supplies nearly 50% of its electricity, with the expansion of the Paks Nuclear Power Plant ongoing. Natural gas, Hungary’s second-largest electricity source, with a 29% share, further enhances flexibility. Spain, conversely, has gradually reduced its share of nuclear energy to 19% and is planning a full phase-out by 2035. Natural gas contributes around 17% to Spain’s energy mix.

Both countries recognise energy storage as crucial to stabilising intermittent renewable energy. Hungary is investing EUR 150mn into around 50 grid-scale storage projects, increasing capacity by 440 MW by April 2026. Spain, ahead in storage infrastructure development, has committed to projects totalling 811 MW (3.6 GWh).

Residential storage is gaining momentum in Hungary, backed by an ambitious EUR 838mn subsidy programme projected to yield around 4 GWh of home-based battery capacity, significantly reducing peak evening loads by 2.5-5%. Spain already boasts some 1.4 GWh in residential storage capacity, indicating a mature and rapidly growing market.

Lessons, European reactions

The Iberian blackout has prompted broader European discussions on renewable energy integration, underlining that the flexibility offered by other sources such as nuclear and natural gas remains vital.

Former chairman of the Spanish national grid operator Jordi Sevilla has warned of the volatility of renewables, advocating for a major modernisation while retaining nuclear as a stable backup.

The European Commission has launched an independent investigation into the blackout, while the European Parliament has emphasised nuclear energy’s strategic importance for the continent’s decarbonisation and energy security goals.

In Spain, the blackout intensified debates over the nuclear phase-out. Spanish MPs recently passed a proposal urging reconsideration of the strategy, stressing the need for a balanced energy mix to maintain energy security during periods of fluctuation.

Flexibility must be crucial feature of any grid infrastructure

The experiences of Hungary and Spain demonstrate that, while renewable energy is crucial for decarbonisation, grid reliability and stability requires integrated and controllable energy sources. Investments in grid infrastructure, as well as residential and grid-scale storage, while maintaining nuclear and gas capacities remain essential for resilient energy supplies.