Impact of the blackout on the Basque business community

Impact of the blackout on the Basque business community

Teacher-Researcher at Mondragon Unibertsitatea

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RSummary published in Estrategia Empresarial

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Impact of the Blackout on the Basque Business Community

On April 28th, an unprecedented event occurred on the Iberian Peninsula. A power outage, or colloquially known as a "blackout," the true causes of which are still unknown. The main hypotheses include a critical imbalance between electricity generation and demand, which resulted in a sudden loss of a large amount of power generation, produced a severe frequency deviation in the Spanish electricity system, and ultimately led to a complete collapse of the electrical system.

What is known are the effects of the blackout on the Basque business community. This event was an unexpected test to measure the response capacity of Basque companies and institutions. Although its duration was limited, the outage highlighted the strong energy dependence of all sectors and the need to improve their resilience.

In industry, companies that had an auxiliary energy backup system were able to halt their production processes in a controlled manner, avoiding damage to their manufactured products or production machinery. Examples of these companies include large foundries with furnaces, where a sudden shutdown of the furnace could irreversibly damage the machinery and the furnace itself. This could also include highly automated production lines or machining centers, where if cutting tools, for example, are suddenly stopped, both parts and tools can be damaged. This could also include hydrocarbon companies, with highly complex production processes that require evacuating and burning some of the gases generated during the process interrupted by the power outage. In contrast, in companies without backup systems, the sudden power outage paralyzed production lines, generating material losses and unusable products. However, in all cases, since most companies do not have long-term backup systems, they had to halt production for much longer than the blackout itself, as restarting processes can take days. In all of these companies, the prolonged production shutdown generated subsequent economic losses.

However, large companies with data processing centers were able to keep them operational thanks to the associated backup systems, such as banks, which were able to maintain online banking services.

On the other hand, the many jobs in companies, institutions, or those performed from home, dependent solely on computers and the internet, had to stop during the blackout, creating a work hiatus that could be resumed at a later time.

The impact extended to construction, where only projects operating with their own generators and not connected to the power grid were able to continue due to their independence from the grid. In other cases, electricity dependence forced work to be halted, and even the rescue of workers trapped in electrical machinery such as elevators.

Transportation, commerce, and services also saw their operations disrupted. Stationed trains, impossible payments, and limited communication networks were a reminder of how fragile everyday systems can be. Only those who retained analog resources or alternative technologies were able to adapt temporarily, such as taxi drivers in large cities with their analog radios who were able to coordinate.

In contrast, the healthcare sector stood out for its preparedness, with hospitals activating autonomous generators to maintain care. However, the dependence on fuel supplies for these generators and the shortage of operational gas stations, which also depend on electricity to operate, raised new logistical questions for possible future blackouts that could last longer.

Finally, the domestic and educational sectors operated with minimal resources. Homes with photovoltaic panels and batteries had electricity during the blackout, although only for a few hours and were the least likely to be available. Most home elevators stopped suddenly, again requiring minor rescues.

This event underscores the need to reflect on whether or not to invest in backup systems that reinforce energy autonomy, review emergency protocols, and invest in sustainable solutions that guarantee continuity in future crises.

• See summary in Estrategia Empresarial: See summary