Massive Power Outages Hit Spain, Portugal Snarling Travel: Investigations Into Cause Underway – Vanguard FTSEEuropean ETF (ARCA:VGK)

A widespread power outage struck large parts of Spain and Portugal on Monday, disrupting daily life and causing travel chaos. Major cities including Madrid, Barcelona, Lisbon and Seville were affected, with reports of outages also emerging from parts of France and Andorra. 

The Details: The blackout shut down traffic lights, caused heavy congestion on roads, and halted operations at airports, train stations, and metro systems. 

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In Madrid, traffic reached a standstill after signals failed, prompting police to advise people to avoid unnecessary travel and drive cautiously. The Madrid Open tennis tournament was suspended and fans exited in the dark. At Lisbon’s Humberto Delgado Airport, travelers waited in unlit terminals without air conditioning or running water, and shops only accepted cash.

Spain’s national rail operator, Renfe, reported that the blackout stopped trains nationwide and led to canceled departures. Metro systems in Madrid, Barcelona, and Valencia were also evacuated or shut down.

Portugal’s grid operator, Redes Energéticas Nacionais, confirmed that the entire Iberian Peninsula lost electrical supply and some regions in France were also impacted. E-Redes, which manages electricity distribution in Portugal, described the incident as part of a broader European problem and began restoring connections in phases.

Spanish grid operator Red Electrica said it was working closely with energy companies to restore power. It stressed that the cause was under investigation and that all resources were being dedicated to resolving the issue. 

Early reports suggest the outage may have originated from a failure in a high-voltage interconnector in France, possibly linked to a fire that damaged a crucial power line. This disconnected the Iberian Peninsula from the European grid and triggered cascading failures. However, investigations are ongoing, and officials have not ruled out other causes, including cyberattacks.

Power restoration is underway, but authorities warn it may take hours or longer. That’s due to the complexity of restarting the grid after such a large-scale blackout. 

Markets React: European markets traded higher on Monday, with all sectors in positive territory despite the power outages. The Vanguard FTSE European ETF VGK was up 0.08% in premarket trading in New York.

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