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Spain's electricity grid denies blame for blackout and pledges record investments

At a tension-filled shareholder meeting held on Monday, the chair of Spanish grid operator Redeia defended her company following a massive blackout that occurred in April. She also pledged to make record investments.

Redeia is under fire for a major power outage on April 28, which left much of Spain and Portugal without electricity. Chair Beatriz Corredor, however, again placed the blame on power companies.

Corredor, along with Redeia Chief executive Roberto Garcia Merino defended Redeia’s actions both before and during blackout, including their planning of power sources for voltage control and management of the Interconnector with France.

The government's report on the blackout cited Redeia as having failed to calculate the right mix of energy. This was one of the main factors that prevented the grid from being able to handle a sudden surge in voltage, which ultimately caused the blackout.

The largest energy companies in the country have also criticised how the power link is managed with France.

BLACKOUT FALLOUT

In an unplanned vote, held on the request of a shareholder, Corredor won the support of her shareholders.

Redeia's CEO said that the company always adhered to existing rules and procedures, and therefore, it was not necessary to set aside funds to cover costs incurred due to the blackout. Corredor admitted that it faced risks to its brand.

She added that "the numerous episodes of misinformation... have intensified public scrutiny and pressure on Redeia."

Corredor has pledged to defend its company and employees "in the face unfounded and often very serious accusations that seek to undermine our reputation".

Analysts, politicians and energy firms have all called for increased investment in Spain's electricity grids.

Corredor, without providing details, said that the next strategic plan of the company will include an unprecedented amount of investment.

Garcia Merino stated that investments have increased in recent years, and they will exceed 1.4 billion euro ($1.6 billion) by 2025. Pietro Lombardi reports. ($1 = 0.8537 euro) Editing by Inti Lombardo and Mark Potter

(source: Reuters)