Going Nuclear

Key Takeaways

• ENTSO‑E cites 17 interacting factors, not renewables, for Iberian blackout.
• EU will invest €330 million (~$356 m) in SMR and fusion research.
• Spain plans to close Almaraz reactors (7% power) by 2035.
• Deloitte warns Spain would lose €5 bn (~$5.4 bn) without nuclear.
• Several EU nations are reversing nuclear phase‑outs amid energy security concerns.

Pulse Analysis

The April 2025 Iberian blackout sparked a political firestorm, but the ENTSO‑E investigation revealed a complex cascade of voltage oscillations, control gaps and rapid generation disconnections as the true culprits. Renewable output, which was supplying roughly 70% of Spain’s electricity at the time, only tripped early in the sequence and could not be held responsible. The panel’s 17‑factor diagnosis clears wind and solar of blame, while underscoring systemic weaknesses in grid management that demand regulatory overhaul.

Across Europe, the energy shock has reignited a nuclear renaissance. EU Commission President Ursula von der Leyen announced a €330 million (~$356 m) fund targeting Small Modular Reactors and fusion research, labeling the previous strategy to curb low‑emission nuclear power a "strategic mistake." With the bloc importing nearly 60% of its energy—67% oil and 24% gas—the push for domestic, low‑carbon baseload is seen as essential to curb price volatility and reduce geopolitical exposure, especially after the Strait of Hormuz closure heightened supply anxieties.

Spain finds itself at a crossroads. The Sánchez government remains committed to shuttering the country’s seven reactors by 2035, beginning with the Almaraz plant that provides about 7% of national output. Industry groups argue that the current geopolitical climate and a projected surge in demand make the timeline unrealistic, citing Deloitte’s estimate that losing nuclear capacity would cost Spain roughly €5 bn (~$5.4 bn). As neighboring nations roll back nuclear bans, Spain’s policy choices will shape its energy security, economic resilience, and role in the broader European transition.