The Basque Country has initiated a conflict with Aragón regarding the investments of Red Eléctrica de España (REE) in the electrical transmission grid, particularly in light of the widespread power outage that occurred on April 28. This unexpected confrontation emerged during the Conference of Autonomous Presidents held in Barcelona, where the Basque lehendakari, Imanol Pradales, advocated for a reevaluation of investment strategies in the electrical transmission grid to accommodate the growing power needs of Basque industry, notably heavy industry.

Following the conference, Aragón's president, Jorge Azcón, explained that discussions focused heavily on energy topics, but contentious moments arose when Pradales suggested territorializing REE investments, a move that Azcón opposed, citing that such an approach had not been previously applied.

According to sources familiar with the internal debate among autonomous presidents, Pradales proposed to Prime Minister Pedro Sánchez and other regional leaders that REE should prioritize investments in electrical transmission networks, suggesting a shift from the current five-year planning mandated by the EU to a biennial approach that would segregate investments by autonomous communities.

Pradales conveyed that the Basque government was willing to expedite funding needed to modernize its electrical grid, with the understanding that these funds would later be deducted from the contributions Euskadi pays to the central government.

However, Azcón countered that Aragón does not have the financial capacity to advance such funds, creating a perceived inequity in the proposal.

There are concerns from Aragón that this new Basque initiative could disadvantage its own renewable energy investments.

Proponents from Euskadi argue that similar funding structures are already evident in other infrastructure sectors, such as high-speed rail, where Basque institutions have pre-financed certain projects, later reducing their financial obligations to the state as compensation.

For the Basque Country, the electrification infrastructure is considered on par with other essential infrastructure.

From Aragón's perspective, the proposal from Euskadi is an affront given its investment environment, which includes significant projects like Amazon's plans to build data centers with an investment of €15.7 billion, the largest in Spain.

Amazon has identified access to the electrical grid as a bottleneck and has offered to front the necessary expenditures to address it, which would not be feasible under the current terms being discussed.

The model proposed by the Basque Country suggests that they could facilitate such advances while other regions could not access the same funding options.

Additionally, during his address to the press, Azcón highlighted another territorial grievance unrelated to energy, noting that the Basque Nationalist Party (PNV) has secured a deal wherein the central government covers half of the dependency-related expenses in Euskadi, which benefits from more favorable fiscal terms, contrasted with Aragón's financial arrangements.

Azcón referred to the electrical grid demand as a 'Cupo Eléctrico' during discussions with other regional leaders.

He also reminded attendees of a historical precedent from 2015, when the PNV reached an agreement with the Popular Party that allowed Basque companies to pay 5% less for electricity compared to the national average, through specific reductions in electrical tolls applicable only in the Basque region.

This latest dispute among autonomous communities arises amid a backdrop of delays in publishing the new transmission network planning for the 2025-2030 period, coinciding with the National Integrated Energy and Climate Plan (PNIEC) which outlines an investment target of €53 billion for network improvements by 2030, nearly triple the historical average.

The urgency of this discussion has been heightened following the recent power outage, marking a critical juncture in regional energy strategies, particularly for the PNV, which holds five deputies in Congress, crucial for maintaining the Sánchez government's stability.