Traffic chaos
Traffic lights in Madrid are not working, the Reuters news agency reports, while Spanish radio says parts of the underground railway system in the city are being evacuated.
Spanish railway operator says 'entire' grid cut off
Spain's national railway company, Renfe, says the country's "entire National Electricity Grid was cut off" at 12:30 local time (11:30 BST).
"Trains stopped" and were "without departures" at all stations, the company says.
'Causes being analysed'
Red Eléctrica, Spain's national grid operator, has announced it is urgently working to restore power.
It said the cause was a system failure across the entire peninsula.
The operator explained: "The causes are being analysed and all resources are being dedicated to resolving it."
What we know so far
- The Valencia metro has announced it has suspended its entire service service.
- Data from Spain's electricity grid shows an enormous drop off in a matter of seconds.
- Entire cities including Seville, Barcelona, and Pamplona also remain affected.
We'll bring you more updates as we get them.
Welcome to the Sun's live blog on the outage chaos in Portugal and Spain
We'll keep you updated here with all the latest news and reaction.